How does the church record & report for tax purposes when giving the pastor a car?

by Kathy Butler
(Corning, AR)

Our church board has approved the purchase of a car for our pastor to replace his old one. As church secretary/treasurer, how would I record & report this for IRS tax purposes. It is coming out of our General Fund Account.


It will be a gift for our pastor since his car is needing replaced. The board wanted to make sure he had a good reliable car since our nearest hospital where he would make visits with members of the church and community is 30 minutes to 1 hour away 1 way.

The vehicle would be used for his personal vehicle as well as the vehicle used for church visiting. We are a small church with no employees; our pastor does not receive a salary.

I know that I will be giving him a 1099-MISC showing non-employee income for all the love gifts we give throughout the year. Does the amount we purchased the car for get included into that amount or is turned in somewhere else?'

If anyone can clear this up for me I would appreciate it.

Also, we are paying in estimated tax payments for pastor starting this year, using the IRS estimated tax vouchers. Would we increase this quarterly tax payment due in August/September to cover the car? If so, how much should we increase it?

Thanks for your help.

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Comments for How does the church record & report for tax purposes when giving the pastor a car?

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Jul 19, 2010
Giving the Pastor a Car
by: Vickey

You need to consult a CPA or knowledgeable tax preparer for this one.

I know it would be taxable to him, but I am not exactly sure how you would report it for a nonemployee.

As far as the estimated tax payment, I would increase this quarter’s payment by taking the reported value and multiplying it by 15.3 percent for the self-employment tax and at least 15 percent for his income tax (would depend in what tax bracket he was in).

P.S. You probably already know this, but you will have to include all those estimated tax payments in that 1099 for his love offerings.

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