If I hold a meeting in my home for a non profit organization can I charge them "rent"?

Question

I have been told that I may "charge rent" to a non profit organization if I hold ameeting in my home and that the "rent" need not be reported as income for tax purposes. In turn, if I "donate" the "rent" to the non profit I may take a tax deduction.

Answer 1

The quotation marks around "charge rent", "rent" and "donate" require a negative answer to your question.

If you rent your home for less than 14 days, no income or expense is reported. If you donate to a qualified charity, you may take a deduction.

Not all nonprofits are charities. Further, if you are an officer of the nonprofit or charity, this scheme would be considered self-dealing and not allowed by either the organization or the IRS.

The donation would have to be actual cash paid, not "rent" as you say. You could not forgive the rent you charged and then take a tax deduction, which seems to be the intent behind your question.

As a practical matter, if you are supporting the charity, even though not a member of its administration, this scheme would not make sense, it is for your own benefit and not the charity.

Answer 2

You could do all of that plus file a schedule E for that portion of your home you are using for rental. Of course you will need to take and recover the depreciation. You might even wish to serve refreshments and charge them for that. That will require a Schedule C. And of Course the Schedule C will result in a Schedule SE. If you use a CPA you will be able to deduct the Professional fee which will likely include a PIB (pain in the backside) fee. In the end you can figure the cost to do all of this, subtract that from the income and make a donation to the Non-Profit. In other words, what you have been told is true but it is not worth the effort because there is no reduction in your tax liability.

Answer 3

It is actually worse than Bostonian and others mentioned. The rent will increase you adjusted gross income. That can decrease certain deductions and credits you might be eligible for. The deduction for the rent would only cover the rent income, and you would lose the other deductions and credits.

Answer 4

You can charge them rent if you wish but it will be taxable income to you. Donating it back to them would wipe out the income IF you itemized. Net effect: Zero, if you itemize. If you don't, you'll have a taxable profit.

Answer 5

you could try, but why would they pay you rent?

it would be income to you no matter who pays the rent,, if God wanted to rent you house you'd still show the rent as income

if you made a donation to a recognized non-profit, it could be deducted on your taxes if you itemize.

Answer 6

yes