Comments for Clergy Advantage

Comment on Clergy Tax Tips – Housing Allowance Answers by Brian

Brian — Tue, 13 Dec 2011 19:49:33 +0000

Can down payment, closing costs be spread out over a number of years as housing allowance deductions or can that only be taken in the year the closing took place?

Comment on IRS Increases Mileage Rate to 55.5 by jenny

jenny — Mon, 15 Aug 2011 19:14:59 +0000

Based on the information you provided, I don’t think this case can qualify for a higher mileage reimbursement. Unfortunately, volunteers are limited to claiming 14 cents per mile. They are not eligible for the more favorable ‘business’ mileage rate. However, here is a possible solution:

Consider paying the retired pastor a modest sum, in order to make him eligible for the greater mileage reimbursement rate. There are two ways to accomplish this.

a. One option would be to make the retired pastor an employee of the church, paid a modest wage, and reimbursed at 55.5 cents per business mile.

b. The other option would be to make the retired pastor an independent contractor, paid perhaps $50 per month, and also reimbursed at 55.5 cents per business mile.

On another note, we laud your efforts to honor the retired pastor and give him the best compensation available. If you’re unclear about any of this or have other concerns, we’ll be glad to schedule a call. We always recommend a consultation with a qualified tax advisor to uncover any other facts that might affect the outcome before implementing a plan.

Comment on IRS Increases Mileage Rate to 55.5 by Diana Dawson

Diana Dawson — Mon, 15 Aug 2011 15:29:17 +0000

Retired pastor, asked by full time pastor to be the visitation pastor and that his mileage will be reimbursed. Came back and said the most reimbursement they could offer him would be 14 cents per mileage as this is considered volunteer charity work? What is your take on this? As a retired elder, still holding credentials etc. wouldn’t he be eligible for the business expenses in the same way he is still able to use his mortgage as a parsonage expense etc?

Comment on Mixing Business with Pleasure can be good for you and your pocket book. by jenny

jenny — Wed, 29 Jun 2011 18:49:00 +0000

You are correct, only with an accountable plan are meals, as a ministry expense, completely reimbursable. That’s why we strongly emphasize the advantages of a properly set up & implemented accountable plan for ministers. Don’t forget the same principle in entertainment expenses at home. Every time you have a group or even an individual over for ministry or church related activities it needs to be noted on your calendar and counted if you serve refreshments or meals. So if you’re not using an accountable plan, you will likely lose 50% of all those expenses. For more information see our webinar listed under Upcoming Events, “Don’t let Ministry Expenses Eat Your Lunch.”

Comment on Mixing Business with Pleasure can be good for you and your pocket book. by Jeff Collins

Jeff Collins — Wed, 29 Jun 2011 15:23:09 +0000

Although meals are only deductible for 50%, can a church reimburse 100% of meals under an accountable plan? Does the other 50% end up taxable?

Comment on Clergy Tax Tips – Housing Allowance Answers by jenny

jenny — Fri, 28 Jan 2011 19:01:54 +0000

Kristin, you have several issues here and we need to have a more complete discussion. I suggest attending our Tax Free Money for Ministers webinar or contacting us for a consultation with our financial advisor. Either one is complimentary.

Comment on Clergy Tax Tips – Housing Allowance Answers by kenneth

kenneth — Wed, 26 Jan 2011 22:22:02 +0000

My question is, I am a clergy and I own my home, I do receive a housing allowance from my church. I had windows put in my house in 2010, can I use these as a deduction on my taxes. If so how, and how much of it?

Comment on Working After Retirement May Affect Your Benefits by jenny

jenny — Tue, 25 Jan 2011 21:01:18 +0000

That’s a tax planning question that requires more discussion. The good news is, there are a number of possible strategies, but you’ll want a personal consultation. There’s no charge so call 970-667-5819 and we’ll set up a time for you to talk with an advisor.

Comment on Working After Retirement May Affect Your Benefits by Jim Persram

Jim Persram — Tue, 25 Jan 2011 17:23:12 +0000

I am 68 years and receiving social sec. I am still pastoring a church from which I receive a salary. I have my own home in which I live and have no morgage on it.
Question: How can I apply the maximum housing allow. and pension so as to pay the least amount in taxes

Comment on The Three Biggest Tax Savings for Ministers by jenny

jenny — Mon, 26 Jul 2010 23:02:49 +0000

Jeremy,
That’s a great question. You’re right, this is a very controversial topic and we come up against it quite frequently. Part of the reason there’s so much debate is that there are a number of factors involved in the decision process. Whether it’s right or “wrong” to pay off a mortgage can only be properly assessed on an individual basis with a tax (and preferably a financial) advisor.

You make an excellent point about the interest vs the taxes regarding housing allowance, however, it’s not unusual for ministers to pay much more tax after their mortgages are paid off. There are a number of strategies and options used in varying combinations to maximize either scenario. Ministers really need personal discussion with a qualified clergy specialist to weigh all the factors before making that decision.