Tax Exemption

Congress passes laws and usually the appropriate agency can write regulations implementing the law. However, the regulations cannot contradict the law. Nevertheless, with respect to the tax law provision 501(c)(4), that is exactly what happened. Under this provision, the government provides a tax exemption to nonprofit organizations who operate exclusively for social welfare ("White House aide: Obama didn't know of IRS policy," May 20). The implementing regulation and the advice from the IRS is self-contradictory.

Congress passes laws and usually the appropriate agency can write regulations implementing the law. However, the regulations cannot contradict the law. Nevertheless, with respect to the tax law provision 501(c)(4), that is exactly what happened. Under this provision, the government provides a tax exemption to nonprofit organizations who operate exclusively for social welfare ("White House aide: Obama didn't know of IRS policy," May 20). The implementing regulation and the advice from the IRS is self-contradictory.

So now the Republicans want to turn the debate over requiring insurance companies to cover contraceptives into a debate about religious freedom? They argue no one should be forced to support (with their tax dollars) activities that conflict with their religious views. I'll set aside for the moment the argument that insurers covering free contraceptives actually save money in the long run due to reduced health-care costs. I'll also set aside the fact that most Catholic women don't agree with the all-male bishopric that is setting the rules for them.

Like most people, I was originally horrified by the reported targeting of tea party groups ("IRS head forced to go," May 16). I am now less horrified. It is reported that various tea party groups were requesting tax exempt status as a "social welfare" group. We now need to know the definition of a "social welfare" group. Entities operating under the umbrella of the tea party would not appear to qualify. Of course, this tempest in a tea pot does highlight some interesting issues. Do we wish to expand the number of entities claiming tax exempt status or should we limit the number of groups not paying taxes?

Local government is truly where the rubber meets the road. As Baltimore County executive, I proudly oversaw capital projects ranging from the restoration of the Randallstown Library after a fire to the expansion of Cromwell Valley Park. We rebuilt Essex Elementary School and constructed a new interchange at I-795 and Dolfield Road in Owings Mills. We were able to pay for these and dozens of other projects - which improved the everyday lives of thousands of people - with the help of tax-exempt municipal bonds.

Q: My question involves the one-time $125,000 capital gains tax exclusion that people age 55 or over can claim when they sell a home. Can I sell my house at age 53 years and six months, not buy another house, and then wait until I am 55 to exercise my one-time capital gains exclusion? Also, what are the rules if two ,, individuals over 55 are contemplating getting married, and both own homes?W. Gaddis, Bel AirA: Technically speaking, if neither you nor your spouse is at least 55 years old when you settle on the sale of your existing house, then you do not qualify for the IRC Section 121 one-time capital gains tax exemption that allows older homeowners to keep up to $125,000 of their resale profits tax free.

In a split decision, Maryland's highest court ruled yesterday that the Archdiocese of Baltimore does not have to pay taxes on 16 1/2 acres of church property that state assessors argued were not being used for religious purposes. The Court of Appeals ruled 4-3 that the tract, part of St. Francis Xavier Roman Catholic Church on Cuba Road in Hunt Valley, is tax-exempt though it is designated as open space. Saul E. Gilstein, a lawyer for the archdiocese, said the ruling will keep state assessors from trying to tax tracts used by houses of worship.

Q: My question involves the one-time $125,000 capital gains tax exclusion that people age 55 or over can claim when they sell a home.Can I sell my house at age 53 years and six months, not buy another house, and then wait until I am 55 to exercise my one-time capital gains exclusion?Also, what are the rules if two individuals over 55 are contemplating getting married and both own homes?Fred Sweitzer, MonktonA: Technically speaking, if neither you nor your spouse is at least 55 years old when you settle on the sale of your existing house, then you do not qualify for the IRS Section 121 one-time capital gains tax exemption that allows older homeowners to keep up to $125,000 of their resale profits tax free.

Well, this is a fine mess. After years of moaning about various "conspiracies" against them, conservative activists finally have a real (i.e., not manufactured by Fox or inflated by Rush Limbaugh) piece of evidence to take before the court of public opinion. Meaning, of course, last week's revelation that the Internal Revenue Service has been giving extra scrutiny to groups with the words "tea party" or "patriot" in their names. Extra scrutiny from the IRS is about as welcome as extra scrutiny from the proctologist, so one can hardly blame conservative groups for complaining, as they've done since last year.

CareFirst BlueCross BlueShield failed to provide public benefits in exchange for $21 million in tax breaks last year, Insurance Commissioner Steven B. Larsen said in an order made public yesterday. Larsen's order gives CareFirst a year to come into compliance with the state law on premium taxes. The issue is actually moot since another law passed this year will divert the tax money next year to support a prescription drug program for low-income elderly, so there can be no future debate about how CareFirst uses its break.

Well, this is a fine mess. After years of moaning about various "conspiracies" against them, conservative activists finally have a real (i.e., not manufactured by Fox or inflated by Rush Limbaugh) piece of evidence to take before the court of public opinion. Meaning, of course, last week's revelation that the Internal Revenue Service has been giving extra scrutiny to groups with the words "tea party" or "patriot" in their names. Extra scrutiny from the IRS is about as welcome as extra scrutiny from the proctologist, so one can hardly blame conservative groups for complaining, as they've done since last year.

Loyal readers of this page are likely aware that we have not been great supporters of the tea party movement. Too often, we have found those anti-tax crusaders who call themselves tea party patriots are simply rebranded John Birch Society members of an earlier time with all the extremist anti-civil rights, anti-immigration, and anti-United Nations rhetoric that comes with it. But the latest disclosure - gleaned from a draft inspector general's report...

Local government is truly where the rubber meets the road. As Baltimore County executive, I proudly oversaw capital projects ranging from the restoration of the Randallstown Library after a fire to the expansion of Cromwell Valley Park. We rebuilt Essex Elementary School and constructed a new interchange at I-795 and Dolfield Road in Owings Mills. We were able to pay for these and dozens of other projects - which improved the everyday lives of thousands of people - with the help of tax-exempt municipal bonds.

While not a member of the flock, I think some of the Catholic Church's recent actions in the political arena might hold good news for the rest of us. In Maryland, for example, the church has announced plans to help overturn the gay marriage law, as well as to ensure that Catholic organizations don't have to provide birth control. Having so obviously violated the separation of church and state, the church should also be forfeiting its tax-exempt status. As a Baltimore taxpayer, I pay the highest property taxes in the state.

So now the Republicans want to turn the debate over requiring insurance companies to cover contraceptives into a debate about religious freedom? They argue no one should be forced to support (with their tax dollars) activities that conflict with their religious views. I'll set aside for the moment the argument that insurers covering free contraceptives actually save money in the long run due to reduced health-care costs. I'll also set aside the fact that most Catholic women don't agree with the all-male bishopric that is setting the rules for them.

Sen. Benjamin Cardin's recent letter defending Bono and his ONE foundation puts him in direct opposition to President Obama's appeal for "corporate jet" owners to pay their fair share of tax ("Cardin: ONE Campaign works," June 27). U2 are major tax evaders. I am also perturbed by Senator Cardin's statement that Bono and the ONE campaign exercised significant influence on framing legislation in the financial services bill. Paul Hewson, aka Bono, exemplifies the worst characteristics of Wall Street, both for excess and tax evasion.

Q: My husband and I own a vacation home in Ocean City. We have decided to sell it because we don't use it as much as we used to. Since we are both in our 60s, can we use the "over-55" capital gains tax exemption to keep any gain from the sale of our beach property tax-free?C. Tosler, ColumbiaA: Unfortunately, you cannot. There are three basic requirements set out in Internal Revenue Code 121 -- that is the "over-55" tax exemption that allows older homeowners to keep up to $125,000 of their resale profits tax-free.

Dear Mr. Gisriel: My question involves the one-time $125,000 capital gains tax exclusion that people age 55 or over can claim when they sell a home.Can I sell my house at age 53 years and six months, not buy another house, and then wait until I am 55 to exercise my one-time capital gains exclusion?Also, what are the rules if two individuals over 55 are contemplating getting married and both own homes?Ralph PitlerTowsonDear Mr. Pitler: Technically speaking, if neither you nor your spouse is at least 55 years old when you settle on the sale of your existing house, then you do not qualify for the IRS Section 121 one-time capital gains tax exemption that allows older homeowners to keep up to $125,000 of their resale profits tax free.

When deciding whether or not to extend a 100 percent property tax credit to six nonprofit pools council members must consider the nature of some county swim clubs. Granting a tax credit simply because certain pools are considered nonprofits that serve the community is a misnomer. One pool seeking to benefit from the proposal completely renovated their clubhouse in addition to investing in other significant, and costly, cosmetic upgrades. While certain renovations may certainly be necessary, a cash-strapped pool "really struggling to stay afloat" should not misappropriate money for excessive enhancements while neglecting to reserve funds for fundamental operations.

Soccer clubs, PTAs, community associations, a temperance union and inactive foundations belonging to a couple of Baltimore sport legends are among the thousands of Maryland groups that have had their tax-exempt status revoked by the Internal Revenue Service. About 275,000 organizations nationwide — including nearly 6,200 in Maryland — lost their tax-favored status last week for failing to file annual returns for three years in a row. The IRS says it believes the vast majority of them are defunct.