Insight
The IRS determined that a church's STR is not tax-exempt, meaning that income generated from the rental is subject to taxation.
Church’s Short-Term Rental House Isn’t Tax-Exempt, IRS Says
Summary
The IRS has ruled that a church's short-term rental property is not tax-exempt, according to a recent IRS statement. This means the church must pay taxes on income from the STR. Hosts need to understand the tax implications of their rental activities, regardless of ownership structure.
Key takeaway