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Before the enactment of the present federal income tax in 1913, most states exempted cemeteries from local property and excise taxes, because cemeteries were viewed as quasi-public organizations performing a recognized civic service.
But, Congress has allowed some organizations to be exempt from tax, including, ironically, the 501 (c) (13) cemetery company. Specifically, the IRS calls a 501 (c) (13) a nonprofit mutual cemetery company.
For cemetery companies to qualify under Section 501(c)(13), they must declare in the Form 1024 application for tax-exempt status that members will use their plots for only bona fide burial purposes, and will not resale.
First, the property tax exemption for the burial ground is completely dependent on its sole and exclusive use as a cemetery for family members only, so that tract can never be used again for another purpose (including storage buildings).
There is generally no tax deduction for buying cemetery plots from cemetery companies on your federal taxes, but an exception comes if you pay for the plot or other funeral expenses from...
While the thought of a backyard cemetery might be macabre, it is unlikely most people will encounter this niche tax situation. However, there are more common exemptions available to lighten the tax load for a wide variety of homeowners.
The Internal Revenue Code provides a tax-exempt classification for cemeteries under section 501(c)(13). Similar to other tax-exempt entities under the code, income-producing activities must be related to a cemetery’s exempt purpose in order to obtain and then maintain its federal income tax exemption.
While this is largely true, there is an IRS classification that allows certain cemetery businesses exemption from taxes. 501 (c) (13) status is available to nonprofit mutual cemetery companies and nonprofit incorporated cemetery companies.
Under the IRS regulations, the fact that a cemetery limits membership to members of a family will not necessarily prevent it from qualifying for a tax exemption, but nor is it necessary...
tax-exempt cemetery company or crematorium. Thus, a cemetery company or crematorium is not exempt from tax if property is transferred to such organization in exchange for an interest in the net earnings of the organization so long as such interest remains outstanding. An interest in a