Almost all clergy use their personal vehicle for ministry purposes. And there’s nothing wrong with that, as long as they keep proper records. If you are chosen for an audit, you can bet the auditor will take a good look at the vehicle mileage. This is sometimes the red flag that caused the audit. Every year, clients will say, “let’s just take what I put down last year and add some to it”. During an audit, this will not going to fly. Be sure to write down your mileage at the beginning and ending of the year to establish an accurate accounting of total miles driven. Then, document the ministry mileage throughout the year. The IRS requires a contemporaneous accounting of all deductible ministry mileage. Source: Clergy Financial Resources
Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations
< BackClergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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