IRS Updates Mileage Rates for 2011

2011 Standard Mileage Rates The Internal Revenue Service issued the 2011 standard mileage rates used to calculate the deductible costs of operating an automobile for ministry, business, charitable, medical or moving purposes. Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, or pickups ) are listed below….

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Payroll for Churches and Religious Organizations

The end of the year is the perfect time to switch payroll companies. Clergy Financial Resources offers an easy online payroll management service that specifically meets the requirements of religious organizations. We have an unparalleled tax expertise on the complex issues associated with church payroll and clergy compensation. Sixty percent of churches do not follow…

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Church Paying for Cell Phone and Automobile

Reader Question: We (the church) pays for a cell phone and vehicle for our pastor. The church pays the insurance and owns the car but he is the only one that drives it. Do either of these “benefits” need to be taxable? P.A. Yes, both of these benefits are taxable. However, they are only partially…

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Am I allowed to deduct a fundraiser as a charitable contribution?

The topic of today’s post comes from a reader. Remember, if there’s a tax topic you’d like to see covered in an upcoming edition of the Clergy Tax Law Blog. E-mail your topic to our office and it may be included in an upcoming edition. Dear Clergy Financial, Just a question on deducting charitable donations. …

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Unrelated Business Income Tax (UBIT)

Churches and religious organizations may engage in income-producing activities unrelated to their tax-exempt purposes, as long as the unrelated activities are not a substantial part of the organization’s activities . However, the net income from these unrelated business activities will be subject to the “Unrelated Business Income Tax” if the following three conditions are met:…

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Clarifying the IRS Rules About Endorsing Candidates From The Pulpit

Recently in the news, there have been stories about clergy endorsing political candidates from the pulpit: Pastors Preach Politics from Pulpit– News42.com Hastings Pastor Defends Endrosement – WCCO.com Pastors, Not the Gov’t, Should Decide When They Can Speak About Candidates From the Pulpit – Christian Post Minnesota Pastors Plan to Endorse Candidates From the Pulpit…

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Top 10 Question of a New Call

The proposed salary package will normally represent the previous pastor’s salary package or the guidelines set by your organization. 1- Does the church provide a social security allowance? 15.3% or 7.65% of salary and housing. 2- Does the church provide for the supplemental medical insurance? 3-Does the church provide a 100% professional accountable reimbursement plan?…

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Year end tax strategies for clergy

Here’s a quick checklist of tax savings strategies to consider and apply before the end of December: 1. Make Charitable Contributions and Donations: Generally, for individuals, contributions to tax-exempt charitable organizations are limited to 50 percent of the taxpayer’s adjusted gross income for the tax year. Those unused items cluttering closets can be donated to…

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Who is a minister for federal tax purposes?

Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. They are given the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances or sacraments according to the prescribed tenets and practices of that church or denomination. If a church or denomination ordains…

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Clergy Compensation Package

The 1986 Tax Reform Act, the 1987 Omnibus Budget Reconciliation, Technical Correction Act of 1988, and the 1993 Reconciliation Act made the most sweeping changes in almost 50 years. The law is not simple. Your salary package is the most important factor in determining your annual tax liability. At year end, you are limited in…

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