[Finance] Rent as a charitable donation

[Lokkju Brennr]

Right - but your landlord can legally make a cash donation to the
charity for the rent amount each month, that you pay back to them as
rent, as long as money actually changes hands, correct?  i.e., they
write you a check for tax-deductible contribution of $1000, you write
them a check for rent of $1000, etc - or is your landlord prevented
from making tax-deductible contributions?

Loki

On Tue, Mar 8, 2011 at 8:39 AM, Jeff Cotten <omegix at gmail.com> wrote:
>
>
> Synopsis:  Rent is not a tax-deductible benefit when donated to a 501c3
> charity.
>
> Thank you to MrFranceIsBacon from Makers Local 256 who brought this to our
> attention.
> One of the ideas that Makers Local (Huntsville, AL) had when we started was
> to attain 501c3 charity status,
> and then convince local building owners to let us set up there rent-free,
> while they wrote the Fair Market Value (FMV) off
> as a charitable donation on their taxes.
>
> There are tax laws preventing this, it is considered Partial Interest in
> Property.
>
> Ref:  Page 9, Example 1:  http://www.irs.gov/pub/irs-pdf/p526.pdf
>
>
> I've added an entry on the wiki about this here:
> http://hackerspaces.org/wiki/Finances#Tax_Laws
>
>
> Omegix
> Makers Local 256
>
>
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