|Re: Seeking Federal Non-profit Information||<– Date –> <– Thread –>|
|From: Fred H. Olson (fholsoncohousing.org)|
|Date: Sat, 6 Mar 1999 08:59:19 -0600|
Jim Snyder-Grant <danasg [at] newview.org> is the author of the message below but due to a problem it was posted by the Fred the list manager: owner-cohousing-L [at] cohousing.org -------------------- FORWARDED MESSAGE FOLLOWS -------------------- (Scott E. Bogard of Sunward Cohousing in Ann Arbor Michigan asked about tax exemption for the development entity) New View (Acton MA) decided that the cost of getting tax exemption was way more than we would likely pay in taxes, at least for 10 years or so. It looked like it would be expensive and not clearly doable to write up our bylaws to meet the tax-exempt standards. Instead, we made sure to show no or little profit at year end to minimize any taxes due: not hard to do, in this business, with a bit of cash flow management. One key piece of that was to make sure that the big chunks of money flowing in from members during the development process were almost always structured and documented as loans that were to be paid back as a reduction in house price, instead of as income. -Jim Snyder-Grant Where the newly opened common house is a big success! Planned & spontaneous events happening every day. We have various comment boards up that are collecting a lot of ideas for the common house living committee to sift through.
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