Reducing Property Taxes

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iloveionia
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Reducing Property Taxes

Post by iloveionia » Fri Dec 28, 2012 4:26 pm

Well.
Forget about it.
Non-profit status won't help us as the house can't be condemned. It needs to be occupied and used for the non-profit intention.
As for arguing property value? That's in August and we have 25 days.
Please everyone calendar a reminder for August 1st so we can lower the assessed value of Alannah's and 2nd Street. The rest are valued fair.
They responded quickly to my inquiry, I did ask if mothball status played any role. (Left a phone message on that one.)

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jmarkusic
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Re: Reducing Property Taxes

Post by jmarkusic » Sat Dec 29, 2012 8:41 am

I think that might be the easy response for them. If it fits the mission, fits the laws ( the city/ state is charged with protecting the historic houses) then there is always a chance. (Mentioned in other thread - the current regs are to prevent a non-profit making profit from holding houses among other things.) The mothballing idea seems to put the house into never-never land and so stands a chance of being the loop-hole needed then. The houses will need to be seen as not making a profit as well, I suspect. Easy to show with Walnut Court number one. Best to make the application like it is done every day and keep pushing until the OGC gets involved. No one said it would be easy.

Cathy_Campbell
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Re: Reducing Property Taxes

Post by Cathy_Campbell » Sat Dec 29, 2012 9:45 am

Technically Walnut one will make a profit although we will not be taxed on it. The IRS had me recognize all of the leins against it on our 990 so when the house goes away, so do the leins showing, technically, a gain on the transaction.

iloveionia
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Re: Reducing Property Taxes

Post by iloveionia » Sat Dec 29, 2012 11:33 am

I left a message yesterday about mothballing.
He's out until next Wed.
I have his direct line.
Will call again and see what he says.
Nicole Lopez

“One of the advantages of being disorderly is that one is constantly making exciting discoveries.” A.A. Milne

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jmarkusic
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Re: Reducing Property Taxes

Post by jmarkusic » Sat Dec 29, 2012 6:45 pm

Cathy_Campbell wrote:Technically Walnut one will make a profit although we will not be taxed on it. The IRS had me recognize all of the leins against it on our 990 so when the house goes away, so do the leins showing, technically, a gain on the transaction.

Ahhhh ... as it cost this organization some amount of funds to mothball, and the fact that the fines go away are equal to the fines coming in, we still had a loss. X does not equal X+Y even to the IRS. Assuming you are looking at the transaction as a capital gain or loss.

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jmarkusic
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Re: Reducing Property Taxes

Post by jmarkusic » Sat Dec 29, 2012 6:47 pm

iloveionia wrote:I left a message yesterday about mothballing.
He's out until next Wed.
I have his direct line.
Will call again and see what he says.

Do not ask over the ophone, submitt the application and get it into the system. Then argue the case, To easy for them to say no now without having to explain in detail why.

iloveionia
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Re: Reducing Property Taxes

Post by iloveionia » Sun Dec 30, 2012 12:04 pm

Good point.
Will do.
Nicole Lopez

“One of the advantages of being disorderly is that one is constantly making exciting discoveries.” A.A. Milne

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