LLC Lease Structure Costs Idaho Charity Property Tax Exemption
Putting on my federal tax hat, which is pretty much my favorite, I would think that was no problem. A single member LLC, unless it elects otherwise, is a disregarded entity. That means that you can freely take things out of it and put things into it without recognizing gain or loss and, for federal income tax purposes, transactions between you and your single member LLC have as much tax significance as transactions between me and my shadow. So the fact that the Youth Ranch was leasing from the LLC for the greater of $25,000 per month or its mortgage payments would be a transaction that could be washed right out of any federal tax significance.
Then they applied for a property tax exemption on the building, which apparently was solely dedicated to charitable use. Oops.
Court Rules Oklahoma ObamaCare Not OK
The IRS ruled that for purposes of the credit it did not matter whether the exchange was run by a state or HHS. The language in the statute, however, reads that the credit applies when someone is “enrolled … through an exchange established by the State”. Following that logic taxpayers in states with HHS exchanges do not qualify for the credit and hence there is no employer mandate.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.