Question:
A pastor recently died. His church desires to gift the amount of his salary to his spouse for a yet-to-be-determined amount of time. Is there any IRS limitations to the amount we can give? No services are provided by her.
Answer:
There are no limitations on the amounts, but they will be taxable as ordinary income. I tried to do some quick research to see if I could find an exception, but they only related to public safety officers and military personnel.
A pastor recently died. His church desires to gift the amount of his salary to his spouse for a yet-to-be-determined amount of time. Is there any IRS limitations to the amount we can give? No services are provided by her.
Answer:
There are no limitations on the amounts, but they will be taxable as ordinary income. I tried to do some quick research to see if I could find an exception, but they only related to public safety officers and military personnel.
Since there were no services provided by the wife, this would be a gift, not subject to tax. There was no employment contract with the minister, so it is not deferred compensation.
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ReplyDeletePlease be careful not to follow the Anonymous poster's tax law interpretation.
Corey