Mike - Youth Pastor Question

[L.S.]

Have an ordained Youth Pastor - employee of church who will be taking and leading a Missions trip to Jamaica in June of 2008. He will be paying out of his pocket his expenses of approximately $1,200 which will include air fare, lodging & food. He will be paying this before the end of 2007. Will he be able to use any of these expenses? Can he include the expenses in his 2006 return?

Thank you.

[BulldogTom]

Have an ordained Youth Pastor - employee of church who will be taking and leading a Missions trip to Jamaica in June of 2008. He will be paying out of his pocket his expenses of approximately $1,200 which will include air fare, lodging & food. He will be paying this before the end of 2007. Will he be able to use any of these expenses? Can he include the expenses in his 2006 return?

Thank you.

Not Mike, but let me take a shot at this one.

Yes, the expenses would be deductible as business related, 2106, 2% haircut, only if he itemizes. No chance that it can be put on 2006 return if paid in 2007 and going in 2008 (did you really mean 2006 or is that a typo?).

But I would approach it in a different way. I would see if the chuch has a way to pay for the trip for him in one of his budget categories. Some churches have Ministry Related Expense plans that re-imburse the pastor for out of pocket expenses. If his church has one, get it reimbursed. If not, see if the church will pay the cost and reduce his budget next year as it relates to his salary/expenses.

My 2 cents.

Tom

Lodi, CA

[MAMalody]

<<<My 2 cents.>>>

No change with that answer. Good suggestions also.

Mike

[MAMalody]

Oh, I almost forgot. If there is a reimbursement taking place, it would be good to ensure that there is a written reimbursement policy in place.

[L.S.]

Thank you Tom & Mike. Yes, that was a typo - I meant 07 not 06. Have been doing some extensions!