by Kori
(Texas)
My husband is a full time pastor and has been for years. He also has an approved form 4361 exemption from SE taxes for his work performed as a minister.
However, part-time he is a realtor and this year, 2016, he made a 10k profit on his real estate business.
I was under the impression that although he was exempt from SE taxes for his ministerial salary, he would still have to pay SE taxes for his secular real estate sales.
However, the online tax software I am using completely exempts him on Line 57 on the 1040, and the Schedule SE is not even included with the schedule C for his real estate business.
I feel this is in error, but I need advise to know if maybe I have completely misunderstood the tax law about the exemption of the 4361 exempting him from any SE taxes whether the work is ministerial or secular.
1Comments
Form 4361 - Good news and bad news
BBill OConnell
The bad news is you owe the tax.
Please consider using an experienced CPA tax preparer like my firm Wisdom over Wealth. We service only churches and clergy and are experienced in these matters.
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