Unclear
Factual Assumptions Paying the pastor is an approved purpose of most churches (but not all btw - some have unpaid clergy on what they think are Biblical grounds.) Giving money to needy individuals is an approved purpose of many churches.
Assumptions About the Rules Giving money to an approved purpose of a church is generally a tax deductible donation but giving money designated for the benefit of a specific individual is generally not tax deductible.
So the case of a donation earmarked for the pastor in a church that regularly pays the pastor or a donation earmarked for a needy family in a church that regularly gives money to needy families would seem to fall right between the two rules. My personal attempt to reconcile the two rules is that in order to be deductible a contribution to the benefit of a specific individual must be preceded by a decision of the church to raise money for that individual. Those in this thread who have disagreed with me seem to feel that since the IRS apparently has an unofficial habit of letting donations to the pastor fly they are comfortable going with that. I have not noticed them addressing the other situation so I don't know what they think of it. Because of the penalties for both me and my client I won't write off a deductible expense without (in the case of mileage and charitable) seeing the records and without (in all cases) an assurance from one or more Authorities that the deduction if spent is allowable.
At the same time, I said at one point in this thread that Snags and BB had an attitude that is part of a larger problem in our industry and is the reason why preparer penalties are increasing. Please believe me guys that I did not intend that as a personal attack on you but it was. I am sorry.
Factual Assumptions Paying the pastor is an approved purpose of most churches (but not all btw - some have unpaid clergy on what they think are Biblical grounds.) Giving money to needy individuals is an approved purpose of many churches.
Assumptions About the Rules Giving money to an approved purpose of a church is generally a tax deductible donation but giving money designated for the benefit of a specific individual is generally not tax deductible.
So the case of a donation earmarked for the pastor in a church that regularly pays the pastor or a donation earmarked for a needy family in a church that regularly gives money to needy families would seem to fall right between the two rules. My personal attempt to reconcile the two rules is that in order to be deductible a contribution to the benefit of a specific individual must be preceded by a decision of the church to raise money for that individual. Those in this thread who have disagreed with me seem to feel that since the IRS apparently has an unofficial habit of letting donations to the pastor fly they are comfortable going with that. I have not noticed them addressing the other situation so I don't know what they think of it. Because of the penalties for both me and my client I won't write off a deductible expense without (in the case of mileage and charitable) seeing the records and without (in all cases) an assurance from one or more Authorities that the deduction if spent is allowable.
At the same time, I said at one point in this thread that Snags and BB had an attitude that is part of a larger problem in our industry and is the reason why preparer penalties are increasing. Please believe me guys that I did not intend that as a personal attack on you but it was. I am sorry.
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