When is a love gift not considered income and considered a gift tax?

by Emma
(Pittsburgh, PA)

Our church for decades has collected a free will offering at the end of the year to gift to our pastor.

It does not go through the church books at all, handed in as cash, and given to them as cash. No special envelope. It's just blessing the pastor to bless him.

No one receives a receipt for this for tax purposes.

Is it then up to the pastor to claim as a gift?

The debate this year is if we should be putting this through the church books instead... can we continue the way that we have or do we need to amend and fix how we approach this?

Any articles or even tax code sources you could provide would be wonderful! Thank you!

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Dec 24, 2020
IRS Considers Love Offerings Taxable Income
by: Vickey

The IRS will "usually" always consider a love offering taxable income as they consider it "appreciation" for a SERVICE well done. They considered "income" anything received in exchange for a "service" or good.

You can research "IRS tax court cases involving love offerings" to see how the IRS usually rules on those type of cases and make an informed decision.

ALL money collected in a church...should be deposited and ran through the church's bank account or there is a risk of losing your tax exemption ...or worse! Again....do your research or contact a knowledgeable tax professional. I can highly recommend the Ministry CPA: ministrycpa.org

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