Category Archives: Church Tax Law
Church Receives Retroactive Property Tax Bill
Over the years I have assisted church clients subleasing their property. Most Pastors do this as a way to help their revenues. But, as I have counseled, churches have to be very careful because of Unrelated Business Income Tax (UBIT), running afoul of Public Accommodation laws and also risking the church Property Tax Exemption. … Read More »
Church Loans to Board Members and Officers
Dear Clients and Friends, Occasionally I am asked to advise a church client desiring to loan money to a church leader who has a financial need. You would think a ministry should be able to give a lending hand to a leader in need. But think again. The legal question is bifurcated between state… Read More »
Important Reminder: Renewing Your Not for Profit/Church Corporation
Please be on the look out for the annual Florida Department of State, Division of Corporations reminder to renew your not for profit/church corporation. They are being emailed now. This is very important because it verifies the leadership of the entity. Failure to do so may result in “Administrative Dissolution” of your corporation. To… Read More »
2018 Parsonage and Housing Allowance Reminder
Dear Clients and Friends, Now that we are in December allow me remind you, if you have not done so already, to have your Board or Congregation approve 2018 parsonage and housing allowances. Remember they must be in writing and in advance of the calendar year. They cannot be retroactive only prospective. Failure to… Read More »
Housing Allowance Struck Down Again
Dear Clients and Friends, On October 6th a federal judge in Wisconsin has struck down as unconstitutional the Housing Allowance. Expect an appeal. If the Court of Appeals accepts the case it could rule on the actual underlying issue of whether the clergy housing exclusion is constitutional. Then off to the Supreme Court. I… Read More »
Donations to Unincorporated Ministry is Income to Pastor
I have often addressed the legal implications of a church or ministry staying unincorporated. Recently a new court case came down which should again reiterate the importance of getting incorporated. In Gardner v. Commissioner of Internal Revenue, 845 F. 3d 971 (9th Cir. 2017), the court of appeal recently affirmed the ruling of the district… Read More »
Contribution Statement Reminder for Church Treasurers and Administrators
Church Treasurers and Administrators are busy this time of year preparing their general annual contribution statements for 2016. Please remember to add the following phrase: “No goods or services were provided in exchange for your contribution, other than intangible religious benefits.” Failure to do so may result in the church donor not being able… Read More »