Sale Of A Tax EXEMPT Property

[tyty2304]

Hi,

I am trying to find out if taxes have to be paid on a Tax-Exempt Building. 

A member of the EASTERN STAR has now SOLD the BUILDING and the Two Parking Lots as a package deal for $495.00.

I need to know since this person is the only one dealing with the Sale in her name would she have to pay taxes on the Sale and File it with her Tax Return in 2021 before she divides the money among the other remaining members since everything is in her name and she has been responsible for taking care of the business expenses and the building.  

[ErnieS0]

Please clarify your question. Is this building owned by an individual or a tax exempt organization? What type of exemption does this building have? Is it exempt from property tax? Income tax?

An individual would report profit (and possibly a loss) from the sale of real estate, even if the building had a tax exemption.

If the building was owned by a nonprofit, the organization would report the sale.

[tyty2304]

Hi

Sorry for the delay in the reply. The building is owned by a tax-exempt organization.

What type of exemption does this building have?

They have a 501- C3

Is it exempt from property tax? Income tax?

They said they never paid any federal nor state tax.

Would they receive something from the federal and state concerning the sale of the property.  What type of form would they file to address the sale of the property if they are an organization?  Since she is the one person who is dealing with the business sale, does she have to file the sale of the building with her tax return. 

An individual would report profit (and possibly a loss) from the sale of real estate, even if the building had a tax exemption.

If the building was owned by a nonprofit, the organization would report the sale.

[RobertB4444]

@tyty2304  The non-profit is reporting this sale.  The individual just handled it on behalf of the non-profit.  They have nothing to report on their personal return.