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

gifting
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 well...so PLEASE consult a CHURCH tax professional such as the CPA I worked for: Bill OConnell with http://wisdomoverwealth.com 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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Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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