ILLMAS Posted March 20, 2009 Report Share Posted March 20, 2009 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, Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 20, 2009 Report Share Posted March 20, 2009 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. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 20, 2009 Author Report Share Posted March 20, 2009 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. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 20, 2009 Report Share Posted March 20, 2009 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. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 21, 2009 Report Share Posted March 21, 2009 I have never seen a priest pick up the bill at a restaurant. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 21, 2009 Report Share Posted March 21, 2009 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. Quote Link to comment Share on other sites More sharing options...
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