Tax Exempt? Shtiebl or mikvah in house? Parsonage?

newmom1987

Sun, Sep 20 2015, 7:50 pm

Anyone do this?f you have a mikvah in your house and some learning, davening, do have to pay property taxes? I think there is something called "parsonage". Does anyone know more about this?
Thanks!

MiracleMama

Sun, Sep 20 2015, 8:09 pm

I think that you can deduct a portion but not full for this. In order to pay zero property taxes I believe your home would have to be owned by shul or not-for-profit organization.

newmom1987

Sun, Sep 20 2015, 8:15 pm

The shul can own the house. That's fine because the shul would be us, right?

nylon

Sun, Sep 20 2015, 8:40 pm

Parsonage is more complicated than that. It allows you to exempt a portion of your income from federal income taxes. You need an accountant.

The rules about houses of worship are not designed to get you out of paying taxes. Getting your home designated as a house of worship is more complicated than just calling it one. Yes everyone talks about how many houses in some places do this... but you actually need the home owned by the congregation, and some counties have asked for verification.

TwinsMommy

Sun, Sep 20 2015, 8:47 pm

If dues are paid isn't there a zoning issue? And how would the mikvah work in a house?? This house has a parking lot?

newmom1987

Sun, Sep 20 2015, 8:49 pm

There was a Dr's office there before, there is street parking.

MagentaYenta

Sun, Sep 20 2015, 8:59 pm

You need to check current zoning laws and speak with an atny and accountant. It's not as simple as just declaring it as such on your taxes.

newmom1987

Sun, Sep 20 2015, 9:02 pm

I understand that I will need professional help. But is it possible? Do mikvaot pay property taxes?

amother

Seashell

Mon, Sep 21 2015, 5:31 am

I don't know about mikvoat, but we have a house in neighborhood that hosts a large shul. People daven and learn there all day and into the night. They do not pay property taxes on the house (they owned the house before the shul was built and the house is still in their name). This is NJ. I don't know how it works.
I do know every so often he has to prove how much the shul is actually used, if it is less then a minimum they would start taxes again. Every so often he has to go before a board and a few neighbors come as "witnesses".

Rebesq

Mon, Sep 21 2015, 3:42 pm

The parsonage exemption is for clergy. Not for the house itself that becomes a Shul, unless your husband is the Rav.

newmom1987

Mon, Sep 21 2015, 3:46 pm

yes, my husband would be the rav. Could anyone recommend a lawyer or accountant in the ny area who deals with this sort of thing?

33055

Mon, Sep 21 2015, 3:47 pm

newmom1987 wrote:

yes, my husband would be the rav. Could anyone recommend a lawyer or accountant in the ny area who deals with this sort of thing?

You really need a local attorney. Which county? You need someone familiar with the local government.

You should also ask around because things are different from place to place.

Last edited by 33055 on Mon, Sep 21 2015, 3:50 pm; edited 1 time in total

Rebesq

Mon, Sep 21 2015, 3:49 pm

There are 2 separate things. Income earned by a clergyman is exempt from taxes (Not SS or FICA). Houses of worship are exempt from property tax. But if it's akso your personal house it's not so simple.

newmom1987

Mon, Sep 21 2015, 7:29 pm

Thanks for all the tips. If anyone wants to PM me with more info it would be greatly appreciate.

cnc

Mon, Sep 21 2015, 8:02 pm

You definitely need to speak to an attorney. I know someone that purchased a house where I live under the name of a shul (although it was NOT used as a shul). The person has since died and the family has a problem selling the house now (a legal problem). In the meantime they are just renting it out.