Nonprofit Tax Exemption Attorney In California

Tax exemption is the process of being exempt from certain taxes or tax liabilities. This can be done through tax credits, deductions, or exemptions for certain types of income, property, or purchases. Tax exemption can be granted by the government or other organizations and can be either temporary or permanent. Tax exemption is a great way for individuals and organizations to save money on taxes and can often be an important factor in helping businesses and nonprofits succeed.

Tax-exemption is not about corporate status but rather about, well, your taxable status as an entity. Typically, net income from entities is taxable and payable to both the IRS and the Franchise Tax Board. However, tax laws both at the federal and state levels provide for some exemptions. At the federal level, many people are familiar with Internal Revenue Code section 501(c)(3). There are actually several 501(c)-somethings that provide for tax-exemptions. An organization obtaining a 501(c)(3) designation has the additional benefit of being deemed a charitable organization that can provide donors with the opportunity to receive a charitable deduction on their personal tax returns for their gifts to those organizations.