A church issued a 1099 misc in 2008 consisting of a capital gain on the sale of the house that a minister was living. The church sent her a letter with all of the details (closing cost etc…) and also providing her with a net profit number which is the amount on the 1099 misc form. She resigned has the minister of the church in Dec 2007 and is now a W-2 employee with an unrelated company. I was wondering how the 1099 misc amount should be handled on the 1040. Thanks in advance.
-
-
Who owned the home at the time it was sold - the church or the minister?"The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith -
-
It appears that the church wanted to give the minister the proceeds from the sale of the residence as additional compensation when she left. If so, I believe it would be treated just like any other taxable income - no different that salary in how it is treated for tax purposes. They apparently issued the 1099 since they didn't know how else to treat it, and maybe they were hoping she could somehow get capital gain treatment of the proceeds, but I don't think that will fly since she didn't own the property herself. Maybe someone else will step in with other thoughts."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
-
Would this go on Line 21 as Other Income or would this be subject to self employee tax and be put on Sch C. This is my first dealings with a minister...thanksOriginally posted by JohnH View PostComment
-
I would put it on Sche C as ministerial compensation subj to SE tax unless she has opted out via Form 4361.Comment
Comment