Clergy -> Sch C

[ILLMAS]

I have a TP that is a priest, the church were he resides issued him a 1099 for his service, he also has some expenses related to his ministry (books, training, seminars), he also has some donations, can he deduct those donations on Sch C instead of Sch A, he is not itemizing. Also, what would be the business code for him?

Thanks,

[kcjenkins]

The code would be 813000

No, he can only deduct his offerings if his denomination REQUIRES that he tithe, which most do not. Of course, you should ask him what, if anything is REQUIRED in order to maintain his employment. I have won that issue in an audit, years back, where the denomination had it in their written rules for ordained ministers in their faith. In such a case, it's a 'reasonable and necessary expense of his business', not a 'donation'. And I put it under Returns and Allowances. But I would not take it unless I had that in writing in my file.

[ILLMAS]

The code would be 813000

No, he can only deduct his offerings if his denomination REQUIRES that he tithe, which most do not. Of course, you should ask him what, if anything is REQUIRED in order to maintain his employment. I have won that issue in an audit, years back, where the denomination had it in their written rules for ordained ministers in their faith. In such a case, it's a 'reasonable and necessary expense of his business', not a 'donation'. And I put it under Returns and Allowances. But I would not take it unless I had that in writing in my file.

Double checked and he is not required and thank you.

[mcb39]

I have a TP that is a priest, the church were he resides issued him a 1099 for his service, he also has some expenses related to his ministry (books, training, seminars), he also has some donations, can he deduct those donations on Sch C instead of Sch A, he is not itemizing. Also, what would be the business code for him?

Thanks,

Don't forget his mileage. My "Priest Client" practically lives in his car what with hospitals, nursing homes, Masses at other parishes, etc. And then, there are gifts to parishioners.; as well as lunches. I always tell him that his parishioners should be buying him lunch, but he just shrugs and shakes his head.

[Lion EA]

I have never seen a priest pick up the bill at a restaurant.

[mcb39]

I have never seen a priest pick up the bill at a restaurant.

Well, mine does all the time; way too often. He also sends flowers and other gifts. He brings me homemade piorogi and polish sausage. He was born and raised in Poland, and his church has a Polish Fest every March. He donates a great deal of the food. His is a quite poor parish and he has the biggest heart I know. Has been my client for about ten years now and keeps terrible records, so spend a lot of time straightening him out. Finally have him contributing to an IRA for about the past 4 years.