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Question on Pastoring and Taxes

Discussion in 'Money Talk$' started by thegospelgeek, Jan 13, 2009.

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  1. thegospelgeek

    thegospelgeek New Member

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    I currently do household chores such as mow the lawn, cut firewood, and handy man stuff around the house. If i take on a pastor position i will no longer have the time to do such as a bi-vocational pastor. My question is, if I have to hire someone to do these chores can I offset this cost against what my small salary would be from the church?

    Any experts out there?
     
    #1 thegospelgeek, Jan 13, 2009
    Last edited by a moderator: Jan 13, 2009
  2. sag38

    sag38 Active Member

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    You may be able to consider those a housing allowance expense. That would free you from Federal Income Tax. But, keep in mind that you housing allowance is taxable as self-employment income around the 15% mark.
     
    #2 sag38, Jan 17, 2009
  3. annsni

    annsni Well-Known Member
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    From my understanding, things pertaining to work on the household counts for housing expenses but something like splitting firewood wouldn't be included. We count our landscaper (we have over an acre of property and my hubby is allergic to the grass), taxes, all utilities, insurance and home improvements on this bill (actually it's not a bill but a fixed amount we came to when DH went on staff - an estimate of what it costs to run our home). Basically whatever the church would pay on a parsonage is what we consider under our "housing" check.
     
    #3 annsni, Jan 17, 2009
  4. thegospelgeek

    thegospelgeek New Member

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    Thanks for the replies. Sounds like I'll have to find me a tax expert. Do any of you do your own taxes or do you have someone do them?
     
    #4 thegospelgeek, Jan 21, 2009
  5. sag38

    sag38 Active Member

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    I do my own. About ten years ago I took the HR Block tax course. Also, I worked for HR Block for two season and even taught the tax course in what would have been my third season. And, while Block didn't really address doing a minister's taxes I learned tax jargon and can read and understand the books that are out there on preparing taxes for an ordained minister.
     
    #5 sag38, Jan 22, 2009
  6. billwald

    billwald New Member

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    Ask the church to hire the fellow. Donate an equivalent amount to the church. Take the deduction.
     
    #6 billwald, Jan 22, 2009
  7. thegospelgeek

    thegospelgeek New Member

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    This is one of the things I am considering. God has blessed me and I want to hire someone who needs the money. However, I do not believe in give away programs for those who can work. This is the best solution I have thought of and your mentioning it give it some confirmation.

    I'm still listening for others.
     
    #7 thegospelgeek, Jan 22, 2009
  8. TomVols

    TomVols New Member

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    You could deduct everything but cutting the firewood. That might not fly with the IRS. Again, this counts towards your expenses towards housing allowance. You do get a housing allowance, right?

    If not, they're not deductible. So I need to hear that answer. What Billwald suggested is only feasible if you itemize.

    And I'm as close to a tax expert as they come around here on ministry taxes. :) I have been doing my own for almost 20 years. Trained tax preparer and will be an MBA within about a year.
     
    #8 TomVols, Feb 5, 2009
  9. SaggyWoman

    SaggyWoman Active Member

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    I do my own. Schedule A.
     
    #9 SaggyWoman, Feb 5, 2009
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