Property Tax On Parsonage On Church Property

[Ainmire]

s About Taxes)/property tax on parsonage on church property Advertisement Expert: John Stancil, CPA - 3/4/2010 Our church sits on 5+ acres of land along with a parsonage.  If we want to rent the parsonage and use the rent to meet our church budget do we have to sub-divide the land that the parsonage sits on and pay property tax on it or does it remain a part of the church property thereby continuing to be tax exempt.

[Ghislain]

Joyce,

Thanks for your question.

As long as your income from the rental is under $1,000 you do not have any concerns. If it exceeds that amount you may have unrelated business taxable income and might have to pay tax on the profits from the rental.  However, the rental will not affect the tax exempt status and the property does not need to be subdivided.

Hope this helps.

John Stancil, CPA