My 501c3 art center would like to rent/lease a new space. Are there any tax benefits for the landlord if he rents to us below fair market value? Can he take a deduction for the difference between the fair market value and what he receives from us?
2007-11-03 13:02:57 · 3 answers · asked by Linda S 5 in Business & Finance ➔ Taxes ➔ United States
Even if the landlord gave you the use of the space for free, he would have no deduction for lost rent. Donation of the use of a facility is specifically excluded as a charitable donation.
2007-11-03 13:45:44 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
No. Loss of Revenue is never a deduction.
The landlords taxes would be lower because he would be receiving less rent. There is no advantage to renting to you for less than fair market value.
2007-11-03 20:40:56 · answer #2 · answered by Wayne Z 7 · 1⤊ 0⤋
If the tenant is a valid non-profit, you state may exempt the property from property tax so that the non-profit tenant would get the same benefits as a non-profit owner. Mine, California, does. You would have to adjust your rent so that the tenant got the benefit.
2007-11-03 21:39:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋