client has bookkeeping business does church treas. books which reports his stipend income on 1099-misc. which he reports as business inc. on sch C....is it possible for him to deduct his annual donation to church as a possible advertising or other expense or must it be used only on shedule A which he cannot use because total does not exceed st. deduction. I mention advertising exp because the church treas job has increased his business clients. His donation to church is written on bus acct.
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Last edited by mona l; 07-20-2009, 10:08 AM. -
Church Payment
1. Who is getting the church stipend?Originally posted by mona l View Post
2. No matter who, no deduction on Schedule C. Only a Schedule A deduction.Jiggers, EA -
church stipend
he is getting the stipend made out in his name....but so are most of checks he receives from other clients.Comment
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Already getting a benefit
He's already getting a tax benefit that's MORE than his donation to the church; he's taking the standard deduction.
If he buys an ad in the church newsletter from his company, that would be an advertising expense. I get clients from my broker and my lawyer. Would you write off my investment purchases or my personal legal fees (custody case) as business expenses?Comment
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thanks
ok ok I was not asking for a change in IRS rulings but do appreciate input.....I could argue but that is not what I wanted ur answers are what I expected.....Comment
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Another way
Another way he can receive a tax benefit is NOT to charge for his work for the church and, therefore, not receive a 1099-MISC and not report more income on his Schedule C and pay lower income and self-employment taxes. ( He'd probably have less to make a donation to his church then, but as he doesn't itemize he's probably not looking for higher church donations.)Comment
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A Way Forward Was Given
He can't deduct his past donations but going forward if the church can be persuaded to give him enough advertising in exchange for his donation then he could claim an advertising expense.Comment
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