HNS_Haveyouconsidered


Guest

/ #4

2013-12-22 12:10

One issue not mentioned is the fact that if this is a commercial rental, it would produce unrelated business income. I would assume that the nursery school is a not-for-profit, making the rents non-taxable. Going from a non-taxable to taxable income requires transaction costs, such as hiring an accountant, the filing of tax returns, paying taxes, possibly becoming subject to local real estate taxes and a host of other changes in how the church does business. Unless these additional costs are considered and taken into account, it is hard to assess the impact on the church finances, even though the new rental will appear greater on the surface.