LDS Couple Missionaries expenses - Tax deductile ?

[rkfielding]

Are any LDS Couple Missionaries expenses tax dedutible?

[erchess]

Initial Reaction

I have done one return that I can recall for an LDS Couple but they had already done their mission work. However, I did learn something about the denomination.

LDS missionaries are not considered professional religious so we're not talking about a housing allowance. However, when laypeople go away from their main tax home overnight as official representatives of their church, I believe their travel and lodging expenses can be deducted on Sch A as charitable contributions. It seems to me that an LDS missionary would fit there. I don't think the fact that the stay is unusually long hurts their case.

[oceanlovin'ea]

sent by church

I think if they just decide to go somewhere on their own it would not be deductible. But if the church or higher levels of the church sent them somewhere for a period of time to do missionary work, that would be considered a charitable contribution. Their out of pocket expenses would be considered cash contributions.
No deduction for their time would be allowed.

I think they need some documentation from the church that they were sent by the church to this place.

Linda, EA

[Burke]

This puzzles me somewhat. These missionary trips normally last 2 years, is my understanding. So are they working at the same time? Is the church paying them? How do they support themselves? In other words, what taxable income do they have to deduct anything from? One of the things Pub 526 says is that "the amounts must NOT be personal, living, or family expenses."

[JohnH]

I think one key issue revolves around whether the money was sent to the church and then disbursed to pay their expenses vs the money being sent to the missionaries by third parties. Out of pocket expenses for a mission trip endorsed and/or sponsored by the church would be deductible.

[Gene V]

Expense paid my parent

Article on expenses paid by parents for mission work

http://query.nytimes.com/gst/fullpage.html?res=9C0CEED6153CF931A15756C0A966958260

[oceanlovin'ea]

maybe different kinds of mission trips

There may be different kinds of missionary trips. Young men and women too, I have heard will sometimes do a 2 year mission. You will see them on their bicycles and usually wearing white shirts and dark pants. Don't know anything about how they support themselves or if they get paid.
But then an individual, couple or maybe even a family may be asked to go somewhere for a shorter period of time.. don't know exactly. Maybe they go for a month or 2 months and help with a missionary project somewhere.
These people would probably take vacation time or a leave of absence from their job to do this and pay for it with their own personal funds. They would have income to do a tax return and they would be able to deduct expenses connected with the trip as cash contributions.

I don't know how LDS programs work but this is what I think might be. I do have some clients that belong to LDS. If they come in soon, I will ask and post their comments.

Linda, EA

[kpangelinan]

It's been to the Supreme Court already

In going through my graduate tax studies, I know that this issue has been to the Supreme Court and in one circuit, it was allowed and in another it was disallowed.....can you figure which circuit court it was allowed in? That's right, the one where Utah resides....hahaha....I forget how it all got resolved, but I believe the courts reversed their decision in the Northwest.

[Bees Knees]

Out-of-pocket expenses to do volunteer work for a charity are deductible as charitable contributions. Since LDS is a qualified charity (all religious organizations are charities), and since going door-to-door to do evangelizing for their church is an official church sanctioned activity (it is considered an important part of their religion), then any out-of-pocket expenses incurred in doing their missionary work, including 14 cents a mile, hotels for out of town travel, out of town meals, etc. are deductible as charitable contributions.

As for the Supreme Court issue, once the Supreme Court rules on a case, it applies to all circuits. So I think you might be confusing some issues. Unless you can give us a citation, I'm going to assume it wasn't talking about the normal out-of-pocket expenses LDS missionaries incur, because it is pretty clear volunteer work for a charity, including a church, is deductible. That has been established law for years.

BTW, not all LDS members reside in Utah.

[kpangelinan]

Out-of-pocket expenses to do volunteer work for a charity are deductible as charitable contributions. Since LDS is a qualified charity (all religious organizations are charities), and since going door-to-door to do evangelizing for their church is an official church sanctioned activity (it is considered an important part of their religion), then any out-of-pocket expenses incurred in doing their missionary work, including 14 cents a mile, hotels for out of town travel, out of town meals, etc. are deductible as charitable contributions.

As for the Supreme Court issue, once the Supreme Court rules on a case, it applies to all circuits. So I think you might be confusing some issues. Unless you can give us a citation, I'm going to assume it wasn't talking about the normal out-of-pocket expenses LDS missionaries incur, because it is pretty clear volunteer work for a charity, including a church, is deductible. That has been established law for years.

BTW, not all LDS members reside in Utah.

I meant to say the United States Court of Appeals.....where there are 9 circuits with 13 courts among 9 regions spread out across the US. So, in this case, one circuit court (9th out west in Mormon territory) decided in favor of the LDS deductions being discussed here and another east coast circuit (11th) decided against it. However, as I mentioned, without going through research during tax time, I believe the 9th circuit eventually reversed its decision.

I'm not up on the legislation process in our country, but had to do some studies on it in my graduate courses as our tax code was established and is being constantly changed through our judicial system today.

[kpangelinan]

BTW, not all LDS members reside in Utah.

True, not all, but MOST. Over 70-75% (depending on which poll or study you use) of Utah's population are considered Mormon. OVER 1/3 of the entire LDS population resides in this one state.

[Burke]

As an aside, just finished a recent bestseller, The 19th Wife, a pretty full and complete history -- interspersed with a comtemporary tale -- of the LDS church. Quite informative as historical fiction, probably a little biased. However, the OP simply asked are LDS "expenses" tax deductible. No further information given. I still have a problem reconciling the term "personal, living, or family expenses" prohibited as charitable contributions per Pub 526. Answer would require more specifics.

[Burke]

I meant to say the United States Court of Appeals.....where there are 9 circuits with 13 courts among 9 regions spread out across the US. So, in this case, one circuit court (9th out west in Mormon territory) decided in favor of the LDS deductions being discussed here and another east coast circuit (11th) decided against it. However, as I mentioned, without going through research during tax time, I believe the 9th circuit eventually reversed its decision. I'm not up on the legislation process in our country, but had to do some studies on it in my graduate courses as our tax code was established and is being constantly changed through our judicial system today.

The 1990 decision quoted above by Gene V was the Supreme Court.

[kpangelinan]

Thanks,

The 1990 decision quoted above by Gene V was the Supreme Court.

Nice.....thanks!