You'll need to sign in or create an account to connect with an expert.
Sales tax and income tax are two different issues. Whether you have to collect sales tax on all, some, or none of your sales, will depend on your state sales tax laws and you need to check with your state.
You generally won't owe corporate income tax on the profits (gross sales minus expenses) as long as those profits fund your other charitable and non-profit missions. But, you at least need to be aware of "Unrelated business income tax" UBIT. Even if the overall church is non-profit, you can owe income tax on the profits from "unrelated" business ventures. Whether your gift shop strays into unrelated business territory depends on what the store sells and what purpose the money is used for. You may want to have an accountant advise you on the issues of unrelated business income.
Sales tax and income tax are two different issues. Whether you have to collect sales tax on all, some, or none of your sales, will depend on your state sales tax laws and you need to check with your state.
You generally won't owe corporate income tax on the profits (gross sales minus expenses) as long as those profits fund your other charitable and non-profit missions. But, you at least need to be aware of "Unrelated business income tax" UBIT. Even if the overall church is non-profit, you can owe income tax on the profits from "unrelated" business ventures. Whether your gift shop strays into unrelated business territory depends on what the store sells and what purpose the money is used for. You may want to have an accountant advise you on the issues of unrelated business income.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
aprcox20
Level 3
FTERoo
Level 3
mikelav456
New Member
jensonchurch
New Member
pagoward
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.