Tag Archives: Property tax

HOMESTEAD EXEMPTION

The California Constitution provides for a Homeowners’ Property Tax Exemption which is a $7,000 reduction of the taxable value of your principal residence. Upon qualification, this can amount to a cost saving of approximately $70 each year on your property taxes. In addition to this cost savings, the primary benefit is the protection it provides from a judgment creditor. Timing:To qualify, the property must have been the principal residence of the owner as of January 1 of that particular tax year. Although there is no cost to file for the […]

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Churches and For-Profit Tenants

It often becomes necessary for a church to seek out tenants in order to meet the financial needs of the congregation. Some are happy to open their doors to other churches, while other desire schools or other groups to make better use of their facilities. Regardless of the approach, the type of tenant sought after can make a world of difference regarding your property taxes, especially if the tenant is a for-profit organization. The following is a brief overview and the proper professional should be consulted as the laws in […]

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Church Parsonage

The Harm in Renting Out the Church Parsonage We often work with churches that have a parsonage going unused or rented out to non-members. As such, the question arises as to tax liabilities. The primary concern is either Property Taxes or Unrelated Business Income Tax. Parsonage Property Taxes: A residential property, (parsonage) owned by the church and being leased does affect the property tax exemption, namely the religious exemption. However, the parsonage may still quality under a welfare exemption. That is, provided its use can be deemed incidental to the […]

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