mortgage for non-profit

how taxes would be handled in this type of situation.

1. I wouldn't be the lone signature on any loan for a group. You should have everyone sign regardless of their income or credit.
2. Is this a 501(c)(3) or a social organization? If the former, then there are only taxes are on UBI and mo property taxes. If the it's latter, you pay the property taxes and the insurance from the NFP's income - AND the NFP writes them off.

I have a concern that this is a group house where all will live as opposed to an office where the group provides services to others. So you really need to see a local Tax Pro, i.e., a CPA, an Enrolled Agent, or a Tax Attorney AND get a cover letter which will protect you from IRS penalties.

Dick

...

I'd be very concerned about the implications on the exempt status of the organization from the appearance of potentially benefit to an individual trustee by large sums appearing in their personal accounts.

_Maybe_ there's a way to "finesse" it, but it reeks of opportunity for mishaps to me. As a Trustee of several 501(c)(3) organizations, I surely wouldn't be comfortable w/ the idea and I'm sure none of our legal advisers would, either.

We're still struggling w/ the new 990's for the first year so there's a lot about them I don't yet know but I can imagine it might even end up showing up on it somewhere if were completely aboveboard in filling them out (assuming your organization doesn't meet one of the exemption criteria, of course). That couldn't be good if so...

This all sounds really dodgy. If the bank is worried whether the group is credit worthy, how about having the member co-sign or guarantee the loan? Then everything's above board, no mystery transactions to explain away.

Regards, John Levine, snipped-for-privacy@iecc.com, Primary Perpetrator of "The Internet for Dummies", Information Superhighwayman wanna-be,

Dang it, John, how can we get a good conspiracy theory going if we don't throw in some mystery transactions?