Should I use a 501 (C)(2) title holding company for placing real estate in to avoid moving up in tax forms? Also, is a 501(c)(2) also a nonprofit org for holding real property?
That's actually a good tactic for a number of reasons. Moving title to real property out of a 501(c)(3) into a 501(c)(2) lowers asset valuation in the c3 for Form 990 purposes. It also distances a potential source of legal exposure from the c3 into another entity. The c2 is responsible for filing its own Form 990, even though it is subordinate to the parent c3. 501(c)(2)s can hold title to real property, as well as intangibles (such as patents), art, and fixed assets...anything with title concerns.
If you need help filing your Form 990, we’d love to help! You can fill out our form at bit.ly/3LQabDr or give us a call at 888-361-9445.
I love your videos! Very informative. Thank you!
Wow this is great thank you so much
Great info. Thank u
Glad it was helpful!
Thank you. I wanted to see if a Private Foundation could file a Form 990-N and it appears the answer is "NO"
Correct. All private foundations must file Form 990-PF, regardless of revenue.
What happens if in the first 4 years we have only worked with 10 thousand dollars per year?
Should I use a 501 (C)(2) title holding company for placing real estate in to avoid moving up in tax forms? Also, is a 501(c)(2) also a nonprofit org for holding real property?
That's actually a good tactic for a number of reasons. Moving title to real property out of a 501(c)(3) into a 501(c)(2) lowers asset valuation in the c3 for Form 990 purposes. It also distances a potential source of legal exposure from the c3 into another entity. The c2 is responsible for filing its own Form 990, even though it is subordinate to the parent c3. 501(c)(2)s can hold title to real property, as well as intangibles (such as patents), art, and fixed assets...anything with title concerns.
What if it is new and made no money at all