You are here:

Tax Law (Questions About Taxes)/Church giving pastor a van can it be considered income

Advertisement


Question
QUESTION: Hello
My church was given a van. The church wants to give the van to the pastor.  Our pastor does not receive a salary from church.  The church can't afford to insure the vehicle anymore so that is why they want to donate it to the pastor.  What is legal to do

ANSWER: Annette,

Thanks for your question.

The van would be taxable income to the pastor and a W-2 should be issued to him for the fair market value of the van.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: If the church gives it to anyone but the pastor does that person who receives it have to pay income tax?

Answer
If the church gives it to an employee or the family member of an employee,it is taxable income.  I realize you may not consider the pastor an employee, but under IRS rules he is performing services for the church, so the van would be taxable compensation.

If it is given to a non-employee, it would be a gift and not taxable.

John Stancil, CPA  

Tax Law (Questions About Taxes)

All Answers


Answers by Expert:


Ask Experts

Volunteer


John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2016 About.com. All rights reserved.