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Level 3
posted Apr 13, 2024 10:21:34 AM

Clergy Expenses for startup Church Plant

My husband is a Sr. Pastor of a new church plant.  We both paid for the expenses (supplies and equipment needed for startup).  Can we list all the expenses under him?  We do have all the receipts.   Or do I need to list the items I paid for somewhere else?

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3 Replies
Expert Alumni
Apr 13, 2024 12:14:22 PM

Yes, include them in your husband's business return and there is no other place to enter these receipts.  As indicated in your other post, be sure to keep all receipts associated with the ministry Schedule C, as Pastor with the tax return so you always have the proof of expenses.  It doesn't matter whether you paid for them or your husband paid for them as long as they are needed to produce the income for this business.

Level 3
Apr 13, 2024 10:26:53 PM

@DianeW777  Thanks when you say for profit, this is for a church that is a non-profit.  However, the church will begin paying the Pastor in 2024 via a W2.  Does any of this matter for 2023?  Sorry for all the questions, just want to make sure I get this right.

Expert Alumni
Apr 15, 2024 6:42:47 AM

No, it doesn't matter for 2023. The profit refers to the pastor only, not the church because in this case as is most, the church itself is nonprofit which is one of the reasons they have specific rules for reporting payments to pastors.

 

@aprcox20