November 20, 2024
Should I issue Form W-2 or Form 1099-NEC for our minister?
Most churches will issue a Form W-2 to a minister for their compensation if the minister is considered an employee of the church. The determination of whether a minister is an employee or an independent contractor is crucial in deciding whether to issue Form W-2 or Form 1099-NEC. Here are
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November 19, 2024
Can a church rent space to a for profit business?
Renting to a profit-oriented business by a church is categorized as an unrelated business activity, which is not directly aligned with the purpose of the organization's exempt status. Such activities must be reported on Federal Form 990-T and will be subject to tax. However, certain expenses can be allocated to
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November 14, 2024
Determine the FRV housing limitation including furnishings and appurtenances
A common method for determining the fair rental value of clergy housing is using a fixed percentage, like 12%-15% of the current home value. However, this method may be inaccurate. The IRS and tax courts typically recommend using methods such as the comparable fair rental value or the comparable sales
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