- quote -

For UBTI to apply, there are 3 conditions:
1) The activity must be a trade or business
2) The trade or business must be regularly carried on
3) The trade or business must not be substantially related
to exempt purposes

- quote -

"If a church's parking lot is used by the church as a
commercial lot during the week, the fees received are income
from an unrelated trade or business even though the lot is
necessary for the church's exempt purposes."

Look at Reg 1.513-1(c)(2)(i)

Mary Ann Thomas, EA in AZ

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- quote -

I'm sure you DO owe the feds something. For some reason lost
in the mists of history, renting the church parking lot is
speciflcally called out as UBIT income.

My non-expert impression is that the IRS is pleasntly surprised
whenever a church pays them tax on anything (unless the amount
is large, e.g. the rent on the land underneath Rockefeller Center),
so I'd suggest filing returns back for three years or so, adding
in the late penalties, and leave it at that.

Regards,
John Levine, johnl[at]iecc.com, First Unitarian Society of Ithaca NY
Between 200 and 500 members, depending on who's counting

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"Jerry Buchanan" <jerryb[at]xprt.net> wrote:

- quote -

I am not sure that you owe the feds anything (think of the
rental as a fund raiser to support your church's mission)
but if in California you might lose some of your property tax
exemption

--
Avrum Lapin avrum113[at]earthlink.net
Upland CA Remove NOSPAM from address

================================================== ===========
Moderator:
Remember that the California Tax people make mothers-in-law
look like really nice people. And that ain't a joke.
================================================== ===========

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Church treasurer again --

We collect $2500 per year from a nearby business that uses
our parking lot for their employees. I have read the IRS's
publication regarding 501c3 "Tax guide for churches and
religious organizations" and it is clear that we have to pay
Unrelated Business Income Tax on this money. It appears we
have never done this. I have been Treasurer for six months,
so I really can't speak as to the what-and-why of previous
years. So, here's the question: how do I get caught-up
without getting thrown-in???

Thank You

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