Question:
Our pastor needs to get a new engine for his car. Our church would like to pay to get this taken care of. If we do this, will our Pastor be exempt from paying taxes on this money?
Answer:
This is a great gesture! Unfortunately, it will be considered taxable income. But don't let this stop you. There are many steps your pastor can take to mitigate the tax bill.
Our pastor needs to get a new engine for his car. Our church would like to pay to get this taken care of. If we do this, will our Pastor be exempt from paying taxes on this money?
Answer:
This is a great gesture! Unfortunately, it will be considered taxable income. But don't let this stop you. There are many steps your pastor can take to mitigate the tax bill.
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