can i avoid taxes by housing disabled adults?

Question

I live on Long Island New York and want to be a family provider for disabled adults. someone said i wouldent have to pay taxes on my house if I did. this is news to me is this true. Thats not why I want to do it because its been a long time dream i just found out about the tax thing today.

Answer 1

I believe you would need to start up a nonprofit organization to be eligible for tax-exempt status. See the IRS website under charities/nonprofits, and see what the eligibility and filing requirements are. As a nonprofit, you would also be eligible to apply for applicable grants and other funding from foundations as well as solicit funds from private individuals to cover costs.

Answer 2

If you are runnning a business, you can claim legitimate business expenses against the business income. There are strict rules on claiming business use of your home, however. The rules are looser for daycare providers; I'm not sure how operating a rooming house would be treated though.

NY might give you a break on property taxes if you use your property for certain purposes. Then again, they may not. In any event, how you use the property (for legal purposes anyway) won't affect your Federal return beyond any allowable business expenses.

Given that there are some potential pitfalls for you, an hour or two consulting with a CPA or tax attorney (NOT a storefront tax prep mill!) would be a very wise idea.

Answer 3

it could. in case you provide over $14,000 to absolutely everyone, you may desire to report a cutting-edge tax return. regardless of if or no longer you will owe present taxes, relies upon upon how a lot you have given away on your lifetime. there's a exemption for presents from one significant different to the different yet there are no longer exemptions for presents from parent to baby.