Non Profit Orgz-sale Of Property

[Unregistered]

Organization In Non Profit Entity. They Have A Builiding They
Are Going To Sell. The Bldg Is 55 Years Old. They Are Going To
Make A Huge Amount Of Money On The Sale Due To Location.

How Will This Be Reported On The 990 And Will Any Of It Be
Taxable.

Thanks For Your Help

[Bees Knees]

It depends on how the organization used the building. Non-profit organizations do not pay tax. That is why they are called tax-exempt organizations. But if the non-profit organization engages in an unrelated business activity, the non-profit organization is subject to tax as a regular C corporation.

So the question is, how was the building used? If it was used in its normal day to day charitable work, the sales proceeds would not be taxable. But if it was used in an unrelated business activity, part or all would be taxable.

I would suggest you see a qualified accountant that specializes in non-profits. Thats an area most of us never have to deal with.