Article Archives >> To the Point
We include the rental income from our low income apartment house on line 6 of our Form 990 tax return under gross rents. Is that correct?
Probably not. If one of your charitable purposes is to provide low income housing, the income from the activity should be reported on line 2 as program service revenue. Many organizations that receive rent from related activities, or interest from program related loans, make the mistake of reporting on the income on the rental or interest lines of the form when they should report under program service revenue. The error makes the organization look like it is doing a lot less of the charitable work for which it was formed than it is actually doing.
What our readers say about Nonprofit Issues
Once again you've tackled a tricky question and explained it so we all can understand the issue.--M.V.
Thank you for your informative and keen advice on nonprofit matters. I believe it's a unique and concise place to get answers to this often wispy area called nonprofit. --R.T.
Have a question?
If you can't find your answer, submit a question and Don will pick one question a week to answer online and to include in our weekly e-mail notice.
Other ways to
find answers:
Talk to the Editor
Next Conference Call:
Tuesday, February 14, 2012
Participate
in this bi-monthly telephone seminar conference call and ask your questions directly to Editor
Don Kramer.
Access the entire site
($9.95/24 hours, $17.95/3 months).
Nonprofit Issues
Live
Full Day Program
A well-received full-day
program that covers the current hottest topics in nonprofit
law. Qualifies in Pennsylvania
for Continuing Education credits.
Speaking Engagements
Don is available for programs and speaking engagements ranging from
a one-hour presentation to a full-day primer on nonprofit law. Contact
us if you are interested in having him speak at your program.