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Tax Law (Questions About Taxes)/Taxability of pastor taking a group to Israel


I went on a tour to Israel with an established tour group. The tour company said that because I was a full-time pastor if I agreed to take a group of people with me and advertise my going to Israel to the congregation, I could get a 25% discount on my cost. And for every paying person who signed up to go in my group I could get a 10% discount on my cost. I ended up having four people go with me so I got a 40% additional discount along with the 25% discount. Are these discounts I got taxable income? If they are, where I do indicate them on my tax forms, on Schedule C (and therefore they are not only taxable but I have to pay Social Security tax on them)? Or do I put them on 1040 as Miscellaneous income? If on 1040, do I need to pay Social Security tax on this as well?


Thanks for your question.

The discounts are not taxable income. It's kind of like iif you are buying a car. The sticker price is $30,000, but you negotiate a price of $25,000.the $5,000 discount is not taxable.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


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 I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


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.

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