tax services

Vehicle Deductions for Pastors

When it comes to tax preparation, appropriately deducting car expenses is an important aspect no matter what your profession, even pastors. If a pastor uses a vehicle for business and personal reasons, they are able to deduct the costs that are involved with the business use of that car. They cannot deduct expenses used for personal reasons including car payments.

A pastor must choose what vehicle deduction they prefer: a vehicle deduction using standard mileage rate or the business use percentage of actual costs. When it comes to vehicle deductions, pastors’ are encouraged to keep a mileage log for business… Continue reading

Tax Preparation: Tax Deductions on Business Gifts

When it comes to being a professional or owning a business, there are many circumstances that warrant gift giving. This also applies to clergymen. As a result, the IRS allows business owners including clergymen the ability to deduct expenses for small gratuities and gifts. Gifts given in a professional capacity are often given in order to build goodwill between a business or leader and clients, prospects, congregation, vendors, or employees.

When it comes to determining tax deductibility for these gifts, the IRS publications 535 and 463 outline the rules and guidelines but in general the dollar value of a gift… Continue reading

Figuring Individual and Minister Taxes: Church Donation Tax Laws

Tis the time of year for charitable contributions for individuals, clergymen and churches, but how are charitable donations supposed to be accounted for in regards to taxes?  The IRS actually allows taxpayers to itemize their deductions to write off their donations to charitable organizations; however, the church or organization that is being donated to must meet IRS requirements.

In order to prevent people from taking advantage of this deduction they have created certain rules that govern the timing of donations, maximum allowable deductions and certain documentation is required.  When preparing individual as well as minister taxes, it’s important… Continue reading

Determining Housing Allowance on Minister Taxes

There are a number of tax exemptions that ministers can benefit from as long as ministers are aware of these exemptions. One of the most common is a tax exempt housing allowance. All expenses for housing which includes furniture and maintenance can be deducted legally. Here is how to determine if you are eligible and how to go about it. 

Determine Eligibility

A minister is defined by the IRS as a person who is “duly ordained, commissioned, or licensed minister of a church.” Religious employees that don’t have these credentials are not eligible for the housing allowance.

Deductions

Once… Continue reading

Tax Preparation for Missionaries

Serving God and spreading the Good News often requires going outside of your comfort zone and even overseas in order to spread the Word. If God is leading you to teach the masses as a missionary, it’s necessary to consider everything that being a missionary entails which also includes proper tax preparation.

According to IRS Tax services, missionaries fall under the definition of ministers. Ministers and missionaries both are people that are considered ordained by a licensed religious group to conduct religious worship, administer ordinances and follow a church’s prescribed system of beliefs. Therefore a missionary is responsible for filling… Continue reading

Tax Services for the Modern Church: Claiming Tithes on Taxes

The concept of tithing consists of donating 10 percent of income to a church. This modern notion of tithing has been around for quite some time. Many believe that tithing began with the Old Testament example first recorded in Genesis, then again in the book of Numbers when tithing was included in Mosaic Law, with its purpose to provide for the Levites.

Despite how it began, tithing has been around for a long time and still remains an important aspect of modern religion. Tithing combined with tax services is a more contemporary concept. Modern tithing usually takes the form of… Continue reading