Prem Tax and Business Services, Inc.
Tax, Payroll & Accounting
                       
IN - Nonprofit retirement community only partially exempt

A portion of property owned by a nonprofit corporation affiliated with the Roman Catholic Church did not qualify for an Indiana charitable purposes property tax exemption. The property contained a retirement community, an administrative center, and a village comprised of single-family residences, duplexes, and a four-unit residence, but only the administrative center was exempt. To qualify for the exemption, the taxpayer must demonstrate that all or part of a building is owned, occupied, and used for charitable purposes during the relevant tax year. The taxpayer argued that its evidence, including monthly newsletters, activity calendars, summaries of the services and activities offered, and lists of residents who utilized the services and activities, established that the village was used for the charitable purpose of providing for the care and comfort of the aged. However, the evidence described activities that commenced after the relevant tax year and lacked probative value with respect to what services and activities were available to the village's residents during the year at issue.



If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose
                
  Tax Tips       Tax Alerts       Tax Forms       IRS Publication       2007 Tax Changes    Tax Rates