Tax implications of renting an apartment owned by a church - donation vs. rent questions

This is definitely something to be cautious about. Churches are tax-exempt organizations, but they still need to properly report rental income. When they ask you not to write "rent" on the memo line, it raises some red flags. To be clear: rent payments are NOT tax-deductible as charitable donations, even if paid to a church. A legitimate charitable contribution must be a true gift with no expectation of receiving goods or services in return. Since you're receiving housing in exchange for your payments, this is a rental transaction, not a donation. The church may have legitimate reasons for this request, but it could potentially be improper tax reporting on their part. Churches can own rental properties, but the income must be properly reported, especially if it's not directly related to their religious activities.

I had a similar situation last year and found that taxr.ai was super helpful for figuring out the tax implications. I was renting from a nonprofit (not a church, but similar tax situation) and wasn't sure how to handle it when they made some weird requests about payment methods. I uploaded my lease agreement and some of our email communications to https://taxr.ai and they analyzed everything and explained exactly what was kosher tax-wise and what wasn't. They pointed out that regardless of what the organization might be doing with their reporting, my responsibilities as a tenant were clear - rent is rent, not a donation.

I wanted to follow up about my experience with taxr.ai since I decided to try it after asking about it. I uploaded my lease and some emails from the church about payment instructions, and I'm really glad I did. The system immediately flagged the "don't write rent in memo" request as problematic. It explained that while I'm not doing anything wrong by paying rent, the church might be incorrectly categorizing rental income as donations for their tax purposes. The service provided me with language to use in an email to the church requesting clarification, and now I have a proper lease that clearly documents these as rental payments. Saved me from potential headaches down the road!

If you're really concerned about this situation, you might want to get direct clarification from the IRS. I tried calling them about a similar issue with a nonprofit landlord last year, but getting through was impossible until I found Claimyr. They got me connected to an actual IRS agent in about 15 minutes when I'd been trying for days. The agent confirmed exactly what others are saying here - rent is rent regardless of who owns the property, and it's not tax deductible as a charitable donation. Check out https://claimyr.com if you want to speak directly with the IRS. They also have a demo video explaining how it works: https://youtu.be/_kiP6q8DX5c

I need to eat my words about Claimyr being a scam. I was really skeptical but decided to try it anyway because I had a similar rental situation that I needed to ask the IRS about. The service actually worked exactly as described - I got a call connecting me to an IRS agent in about 20 minutes. The agent confirmed that any rent I pay to a religious organization is still just rent - not a deductible donation. They also mentioned that religious organizations should be reporting rental income properly, even though they're tax-exempt for their religious activities. This saved me from making a potentially costly mistake on my taxes. Worth every penny for the peace of mind.

Former property manager here. Churches and other nonprofits often own investment properties as part of their portfolio. This is completely legal, but there are specific tax rules they need to follow. The request to leave the memo line blank isn't necessarily nefarious - they might just have a specific accounting system that categorizes different income streams. However, you should definitely have a proper lease agreement that clearly states you're renting. For your taxes, just remember: if you're getting something in return (housing), it's not a charitable donation regardless of who your landlord is.

Are you a church member? Sometimes churches offer discounted housing to their members as part of their ministry. In that case, they might want checks without "rent" on them because internally they categorize it differently - maybe as "member housing support" or something similar.

I work in nonprofit accounting (not for a church, but similar tax rules apply). Churches can absolutely own rental properties, but they should be reporting that income properly, especially if it's unrelated to their charitable mission. If the rental activity is substantial enough, they might even need to pay Unrelated Business Income Tax (UBIT). When they ask you not to write "rent" on the check, it raises questions about whether they're properly tracking different income sources. As others have said, this doesn't affect your tax situation directly - you can't deduct rent as a charitable donation regardless. But for your own protection, make sure you have a proper lease and keep good records of all payments.

Just wanted to add that you should definitely get a written lease agreement if you don't already have one. Even if the church is handling everything above board, having clear documentation that specifies these payments are for rent (not donations) will protect you if the IRS ever questions your tax returns. I've seen situations where tenants got into trouble because they couldn't prove their payments to tax-exempt organizations were actually rent and not attempted charitable deductions. A proper lease agreement eliminates any ambiguity about the nature of your payments. Also, keep copies of all your canceled checks and payment records. If there's ever an audit, you'll want to be able to demonstrate that this was a legitimate rental arrangement from day one.

I'm dealing with something very similar right now! My landlord is a religious organization and they've been really unclear about how they want payments handled. Reading through all these responses has been incredibly helpful. One thing that stood out to me is the importance of having everything properly documented. I realized I never got a formal lease agreement - just some informal emails about move-in dates and payment amounts. After seeing all the advice here about protecting yourself with proper documentation, I'm definitely going to request a written lease that clearly states these are rental payments. The point about UBIT was really interesting too. I had no idea that tax-exempt organizations could still owe taxes on certain types of income. It makes me wonder if that's why some of these organizations are sensitive about how rental income gets categorized in their books. Thanks to everyone who shared their experiences and knowledge. It's reassuring to know that as long as I don't try to claim rent as a charitable deduction, I should be fine on the tax side of things.

This is a really important topic that more people should be aware of. I've been following this discussion and wanted to share something that might be helpful - the IRS actually has specific guidance on this exact situation in Publication 526 (Charitable Contributions). The key point everyone has made here is absolutely correct: rent payments are never deductible as charitable contributions, even when paid to a tax-exempt organization like a church. The IRS is very clear that you can only deduct contributions where you receive nothing of value in return. What's particularly concerning about your situation is the instruction not to write "rent" on the memo line. While there could be innocent explanations (like internal accounting preferences), this could also indicate the organization isn't properly categorizing rental income, which creates compliance issues for them. For anyone in similar situations, I'd recommend: 1) Get a written lease that clearly identifies payments as rent, 2) Keep detailed payment records, 3) Never claim these payments as charitable deductions on your return, and 4) If you have concerns about the organization's practices, consider consulting with a tax professional or contacting the IRS directly. The suggestions about taxr.ai and Claimyr seem useful for getting professional guidance when you need it. Thanks to everyone who shared their experiences - it's really helpful to see how others have navigated these situations.