I am referring to any contributions by members, pastor's salaries, properties owned, etc.
Thank you for your help.
2007-07-29 05:35:23 · 0 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The easy answer to this is "no" - the complete answer is far more complicated.
Income directly from their main purpose of operation is not taxable at the federal, state or local level. So contributions from members would not be taxed. Pastors do pay taxes on their salaries.
Properties owned can be a bit complicated. They don't pay property tax on properties directly associated with their charitable purpose - like the church itself, a fellowship hall, or parsonage. But if they own property they rent out to earn money for the church, they do pay property taxes on that. And they might be subject to income tax on the rent if the property is mortgaged, although not if it isn't - I know that sounds strange, but laws are strange sometimes.
2007-07-29 11:17:07 · answer #1 · answered by Judy 7 · 4⤊ 1⤋
Church "earnings" may well be taxable depending on the source. If they are running an enterprise that would otherwise be taxable (a restaurant) they likely are paying tax. The contributions you or I may make to the church is not taxable as income. The income of the Pastor and all of the employees are taxable. There are some credits and deductions that are unique but that is true with any type of organization. Not all property owned by the church is exempt from property tax. Those properties used exclusively for religious purposes are exempt. An example of property that is taxed would be property that they are holding for future building projects. That would be taxable.
2007-07-29 08:19:31 · answer #2 · answered by ? 6 · 1⤊ 0⤋
Do Churches Pay Taxes
2016-09-28 14:01:20 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Churches are considered charities, so they don't have earnings like a person or a corporation. The pastor pays income tax on his or her earnings from the church as well as monies paid for services, such as weddings.
2007-07-29 12:07:30 · answer #4 · answered by shoredude2 7 · 0⤊ 0⤋
church's earnings are tax-exempt from both federal and state taxes. Church properties are generally exempt from property taxes as well. Pastor's salary is subject to the normal payroll taxes though.
2007-07-29 07:56:17 · answer #5 · answered by Anonymous · 0⤊ 1⤋
your statement about pastors not paying taxes on their salaries is inaccurate. I am a Catholic priest. I pay tax on my income. In other words, my salary is taxed. Because I live in Florida, I do not pay a state income tax because Florida does not have a state income tax. But we do pay federal income tax.
2014-02-24 04:18:31 · answer #6 · answered by Craig 1 · 1⤊ 2⤋
No, they do not pay taxes. The pastor DOES pay tax on his personal salary and earnings unless he is a member of an order that has taken a vow of poverty. In the case of a poverty vow, any income belongs to the order and is not taxable to anyone.
2007-07-29 05:51:14 · answer #7 · answered by Bostonian In MO 7 · 0⤊ 2⤋
state taxes
2007-07-29 05:38:06 · answer #8 · answered by Arundweepsingh bhatia 1 · 0⤊ 2⤋
i believe that churches are tax exempt entities and they do not pay taxes on income. they may have to pay property tax on buildings that they hold but I am not sure. clergy don't pay income taxes as they have special exempt status.
i stand corrected.
2007-07-29 05:38:45 · answer #9 · answered by Anonymous · 0⤊ 3⤋
I do not believe they pay any taxes as they are not for profit entities and all funds made or recieved pay for their maitainance and upkeep. Preist do not get payed...they are provided for....at least in the catholic churches.
2007-07-29 05:41:10 · answer #10 · answered by beledur 2 · 0⤊ 3⤋