Nonprofit assisted living

[danglin58]

I want to know if I can sell a nonprofit assisted living if i had donated property to this entity. It has had no activity since i started it. I personally donated the property to avoid paying additional capital gains taxes on my home that i sold in 2017. I can’t follow thru with the business now. I want to personally sell it on my behalf. I understand that the IRS will come after me to pay that plus penalties I’m sure. I’ve been told, however, that I can’t sell a nonprofit entity and keep the proceeds for myself. 

[KarenL4]

Hi, 

You are not allowed to sell property that belongs to a non-profit and personally retain those proceeds.  Your articles of incorporation hopefully dealt with the disposition of assets upon dissolution. You may want to refer to that.  There are also other administrative steps you must take when dissolving a non-profit.  Here is some information that may help. https://www.irs.gov/charities-non-profits/termination-of-an-exempt-organization. Likely your state will have rules about dissolving the nonprofit.

If you have further questions, you may want to call the IRS and your state.  Here is the contact information for exempt organizations for the IRS.  https://www.irs.gov/charities-non-profits/contact-irs-exempt-organizations

Please give a thumbs up to cheer below if this answer helps!

Best,

Karen