Non-Profit use of property

[Matthew2299]

Our Church has requested to use our property for a youth retreat.  I was wondering if anyone has experience doing so, and if we don't charge them, are there any tax benefits or more importantly, do we have to consider those days as one of our 14 personal days?

I do plan on asking our accountant as well, but thought I would get some internet opinions 🙂

[Alicia753 · Accepted solution]

Hi Matthew,

If your church uses your property for a youth retreat without charge, certain tax considerations and implications for personal use days arise. The IRS does not generally allow a charitable deduction for the use of property, as donating the use of your home doesn’t count as a contribution of your entire interest in the property. This means you likely cannot claim a deduction for the fair rental value of those days.

In terms of personal use days, the IRS typically considers personal use to include time when the property is used by the owner, family members, or anyone using it under an arrangement granting reciprocal use. If there is no reciprocal arrangement with the church and it is strictly a donation of time, it might not count as personal use. However, if it is viewed as a personal gift or donation, it could be classified as personal use, which could affect the 14-day rule.

This rule allows up to 14 days of personal use annually for the property to be treated as a rental for tax purposes. Exceeding this limit could impact your ability to deduct certain rental expenses.

Since the specifics of this situation can vary, consulting with an accountant or tax advisor is crucial. Keeping detailed records of how the property is used will also help ensure compliance and clarify its tax treatment.

I hope this helps.

All the best,

Upfish Management

[Matthew2299]

Thank you so much for your response.  I will definitely be meeting with the accountant.

[John4486]

Hello,

I have not been to this forum for a while, however, I am launching a firm this week to provide accounting services to other Airbnb hosts.  I do not have any clients at this point, but plan on an ad blitz later this week.

You are referring to the Augusta rule.  I can provide some insight if you are interested.

**

Kindest regards,

**[Link removed in line with the Community Center Guidelines] - Please note that it is not allowed to advertise on the Community Center.

John

[Elisa]

Hi @Matthew2299 

Thank you for asking this question in the Community Center, it’s very interesting!

What do you think about Alicia's advice?  What are your thoughts on it? 

Are you going to rent the property for the youth retreat?

Don't hesitate to let us know!

Warm regards, 🌻