All Forum Posts by: John Briggs

Steven Hamilton II,

We plan on doing it an non profit rates, but that being said, he is still going to make a tremendous profit. Even if he is at only a 35% capacity, the NP will have a decent profit. The IRS in their follow up to the application did require that we claim a wage for him. It is very small for now...almost non existent really. Once he starts spending more time on it, there is no issue in increase his wage to a reasonable amount. The NP current has two single family resident houses in AZ that it is renting at non profit rates. But once again, IRS approved it with the related individuals on the originating board.

Bill Gulley,

I am a CPA, and we used an attorney to setup the NP. I guess I don't feel it is a gray area since we had full disclosure with the IRS and they approved it. Given, right now the activity within the NP is very low. As he funds his apartment project, i just have to make sure his compensation is reasonable. On a side note, I went to highschool at Cabool, MO which is an hour east of Springfield.

I am new to bigger Pockets and i'm going through threads that are of interest to me. I have a client who we have 501c3 acceptance and the board is him, his wife, and his brother. All related. Earlier posts said unrelated, and i just wanted to clarify you can get approval if they are related. His intention is to buy or build an apartment complex as the next step after a half way house. We are still working on selling his current business so he has funds to do that, but i have really enjoyed previous posts that touch on this subject. Thank you.