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Non-profit tax exemptness is good actually. It incentivizes charity over profit-seeking ventures. Changing this would increase taxes in the short term but be ba
by Laaas 2y ago
Non-profit tax exemptness is good actually. It incentivizes charity over profit-seeking ventures. Changing this would increase taxes in the short term but be bad long term.
- addicted 2y agoUnfortunately non profit != charitable. That’s what this article is all about. Separating charitable non profits from non charitable non profits and taxing the latter.
- Laaas 2y agoNo, a non-profit is by definition a charity _for something_. It’s a public benefit, and thus not taxed. If it’s not a charity, but uses 501(c)(3), that’s just tax fraud! Tax fraud is already illegal! You read the law at https://www.law.cornell.edu/uscode/text/26/501 https://www.law.cornell.edu/uscode/text/26/501
- addicted 2y agoI deliberately avoided the usage of the term “charity” because the legal definition for tax purposes is indeed different from what people colloquially think of as charities. I used the unwieldy terms “charitable non profit” and “non charitable non profit”, and your link proves me right by explicitly pointing out that charitable organizations are only 1 form of non profit that is tax exempt. > exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes
- HDThoreaun 2y agoMost hospitals are not charities. Theyre run by MBAs and everything is about profit margins
- readthenotes1 2y agoI know someone in real estate who is advised by his wealth advisor to set up an apartment building that gives lower rents to wounded veterans in his small town. That way it would be non-profit and he wouldn't have to pay property taxes and the one or two wounded veterans might get a good place to stay but he would be making bank with the other tenants
- bombcar 2y agoAs a note these kinds of things the IRS figures out ... eventually, and then they have you. The realities of real estate investment involves a ton of things, but there is probably some advantage to renting to veterans, it's not to the point of writing off the entire income from an entire building.
- readthenotes1 2y agoNot paying property taxes or sales taxes on any of the construction materials is a huge advantage.
- SketchySeaBeast 2y agoThe trick there would be to actually incentivize charity instead of bloat and wallet fattening.
- rqtwteye 2y agoThat's the theory. In practice it incentivizes a lot of corruption.