Church’s and the Attorney General
California’s Attorney General has real oversight power over religious nonprofits. Learn when your church needs AG approval for a merger, sale, or major transfer of assets.
Category Archives: Tax & Exemptions
Must a Church Apply for Tax-Exempt Status?
Does your church need to apply for tax-exempt status? While churches qualify automatically under IRS Section 501(c)(3), California requires a separate application to the Franchise Tax Board. Without state recognition, your church remains a taxable entity under the Revenue and Taxation Code.
Churches and Unrelated Business Income Tax
How unrelated business income tax (UBIT) affects churches. Learn which income is taxable, when debt-financed rental property triggers UBIT, the $1,000 filing threshold, and why renting church property with a mortgage can create unexpected tax liability.
Church Parsonage
What happens when your church rents out the parsonage? Learn how renting a church parsonage in California affects your property tax exemption, when the welfare exemption applies, and whether parsonage rental income triggers unrelated business income tax.
R&T Code 214.6 Church Property Tax Exemption Explained
California church property tax exemption rules are often misunderstood. Learn how R&T Code 214.6 works, when shared use becomes taxable, and how churches can stay exempt.
Parsonage Property Tax Exemption
In California, a parsonage is not automatically exempt from property taxes—churches must first obtain an Organizational Clearance Certificate and then file annual county affidavits to prove the home is used exclusively as clergy housing.
The California Mills Act
Enacted in 1972, the Mills Act encourages the preservation and maintenance of Qualified Historic Structures by reducing property taxes
Title Holding Corporations: Understanding 501(c)(2) Tax-Exempt Status
A 501(c)(2) organization refers to a type of tax-exempt entity under the Internal Revenue Code (IRC) as a title-holding corporation or trust that is organized for the exclusive purpose of holding title to property
Understanding the Williamson Act: California Property Tax Explained
How the Williamson Act reduces property taxes for California landowners who commit to agricultural or open-space use. Learn about eligibility, contract terms, rollback taxes, and how the program affects church-owned agricultural land.
1031 Exchanges Basics – A Comprehensive Guide to Tax-Deferred Property Transactions
Named after Section 1031 exchanges of the Internal Revenue Code (IRC), a 1031 exchange is a tax-deferred transaction that allows an investor to sell a property and reinvest the proceeds in a new property of like-kind without paying capital gains taxes on the sale at the time of the exchange. This provision applies to real estate and certain other types of property held for productive use in a trade or business or for investment. The tax liability is essentially rolled over into the replacement property. It’s important to note that […]