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ken1
New Member

I started a church that meets in my house every week for service. I currently pastor the church. I don't take a salary (I work full-time). Are there any tax breaks?

 
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5 Replies

I started a church that meets in my house every week for service. I currently pastor the church. I don't take a salary (I work full-time). Are there any tax breaks?

If you paid out of pocket costs that went to the benefit of the church, like providing food or buying bibles, that could be deducted as a charity donation.  You can not take a deduction for the time you put in.  

The issue of taking a donation for your house is iffy.  You can not take a deduction for partial use of property, but you can deduct out of pocket costs.  Some people might make an argument that you can deduct a percentage of utilities and mortgage as out of pocket costs, but I would not do that because of the no partial use deduction rule.

Also,you need to be concerned about self-dealing.  If you are the person in charge, and you are signing receipts to yourself as proof of your out of pocket donations, the IRS is likely to view that as self-dealing.  It would be better if there was a group of elders or something who could attest to the items you claim an out of pocket expense deduction for.

a308
New Member

I started a church that meets in my house every week for service. I currently pastor the church. I don't take a salary (I work full-time). Are there any tax breaks?

When churches take money and give it to others is that ok?  For example if church member A give $100 dollars to the church he can write that off. The church then gives that money to member B who is in need of financial help.  Now the bad part is that A knows B. 

IsabellaG
Expert Alumni

I started a church that meets in my house every week for service. I currently pastor the church. I don't take a salary (I work full-time). Are there any tax breaks?

Contributions that are earmarked for a specific individual, even if you gave the money to a church, are not deductible. See IRS Publication 526, page 6, under Contributions You Can't Deduct.

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I started a church that meets in my house every week for service. I currently pastor the church. I don't take a salary (I work full-time). Are there any tax breaks?

Just calling  it a church is not enough to make anything deductible.  The church must be a registered 501(c)(3)

a308
New Member

I started a church that meets in my house every week for service. I currently pastor the church. I don't take a salary (I work full-time). Are there any tax breaks?

This is not true according to the IRS. As by definition a church is tax exempt regardless of whether or not they filed  for 501(c)(3) status

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