Gifting a Home to Minister

A home was given to our church as a gift from a family member after their parents passed away.

Can our church gift this home to our associate pastor?

Can we lease to own?

Can we do as a package for long term service and sell them or give them the house after 10 years?

The question is we would like to give the home to them but don't want to hit them with a high tax bill.

How can we do that?

Comments for Gifting a Home to Minister

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Nov 11, 2016
by: Anonymous

From what I know, any gift, whether a car or a home, will be taxed. Just like a monetary gift. You are taxed on the value of that gift. Whichever the case, you must talk to a tax professional to give you the correct information.

Nov 11, 2016
Get Tax Advice Before You Do Anything!
by: Vickey

I completely agree with the previous poster's advice.

Gifting a home can have serious tax consequences for the minister and may cause some big issues for the church as PLEASE consult a CHURCH tax professional such as the CPA I worked for: Bill OConnell with BEFORE you gift that house.

Leasing to own may be an option ... but again... you need to consult a knowledge tax professional that will help you set that up AND let you know how to handle the lease income for the church.

Nov 12, 2016
Gifting a Home
by: Lewis in NC

Also, you didn't say whether there were conditions set by the donor? Maybe the donor wanted the church to sell and use the money or maybe the donor wanted it to be used for housing for the homeless, or used as a parsonage, etc.?

In any case, the problem of taxes is not the problem of the church; it is the problem of the one receiving the gift.

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