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Posted by: auntsukey ( )
Date: January 11, 2017 11:39AM

If the money given to Mission Presidents, 70s, etc. is called stipends, how is that handled with the IRS?

Are the salaries paid to Church employee taxable?

Is the money paid to contractors, designers, workmen, etc. on ward houses and temples tax deductible? How about the luxury items in the temples - e.g. crystal chandeliers, Brazilian mahogany, exotic brocade? Tax deductible expenses?

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Posted by: elfling_notloggedin ( )
Date: January 11, 2017 11:44AM

The mission president's handbook that was released (search for a link on this forum) specifically states that they are *not* to pay tithing on this.

This is because they are probably in a normal ward with people who would find out how much they are paid -- remember, this is in addition to chauffeurs, cooks, gardeners, cars, free education for their children and often housing allowances.

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Posted by: cludgie ( )
Date: January 11, 2017 12:36PM

There was huge contrast when we lived in Congo-Kinshasa, and (at the time) cavorted with the mission president and the local senior missionaries. Living in Congo as a Westerner is incredibly expensive and burdensome. Average cost for a western style apartment was about $3,500 a month. Among the three missionary couples were two wealthy couples (one a senior partner in an accountant firm, the other the CEO of well-known computer hardware manufacturer). They paid dearly, but could afford it. The third were a couple where the guy was a truck driver and his wife a stay-at-home mom; they really sacrificed a lot, selling their house to go on their mission, and still running out of money before the end of their mission.

Meanwhile, the mission president, who was a partner in an Atlanta law firm, had free everything. He paid no rent, utilities, had use of a free car and paid no gas, and his kids got free tuition at church schools. He was also paid a non-taxable stipend, but could not discuss it.

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Posted by: GNPE ( )
Date: January 11, 2017 12:46PM

cludgie Wrote:
-------------------------------------------------------
> There was huge contrast when we lived in
> Congo The third were a couple where
> the guy was a truck driver and his wife a
> stay-at-home mom; they really sacrificed a lot,
> selling their house to go on their mission, and
> still running out of money before the end of their
> mission.
>
> Meanwhile, the mission president, who was a
> partner in an Atlanta law firm, had free
> everything. He paid no rent, utilities, had use of
> a free car and paid no gas, and his kids got free
> tuition at church schools. He was also paid a
> non-taxable stipend, but could not discuss it.

Well Isn't that the Morg for ya?

CULT CULT CULT



Edited 1 time(s). Last edit at 01/11/2017 12:47PM by GNPE.

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Posted by: Cheryl ( )
Date: January 11, 2017 01:11PM

They tend to let any religion use the terms to suit themselves.

IRS would audit and jail us if we used the terms stipends, benefits, and allowances so loosely.

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Posted by: Brother Of Jerry ( )
Date: January 11, 2017 01:28PM

Money paid to church employees is taxed. If you notice on Faust's pay stub, though his pay is listed as a living allowance, tax was withheld. But FICA was not withheld, which I found interesting. The "parsonage" allowance appeared to be tax-free.

I don't know if the living allowance given to mission presidents is taxable, but most of them are serving outside the US,and I assume would be eligible for the foreign earned income exclusion or some such, so there would be no US income tax in any case for those MPs. Tax law for clergy is its own little weird subdomain of the IRS, so take anything you hear with a grain of salt. Clergy is still taxed, but there are very convoluted rules on what is pay going to the clergy and what is a donation going to the church, and housing allowances, and on and on.

However, money the church pays to contractors, construction, lawn care, etc is simply income to those people, and they pay taxes on it. Same for church employees. They pay taxes on their income.

The church does not get to deduct the cost of building materials, or operating expenses for the church, as business expense deductions, because their their church income is not taxed in the first place, so there is is no taxable income to deduct the expenses from.

That said, businesses like KSL or the church ranch near Orlando do get to deduct the expenses of running those businesses, and the income from those businesses is taxed, just like any other for-profit business. I'm pretty sure there is no way Italian marble for a temple could be deducted as a business expense of a cattle ranch.

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Posted by: numbersRus ( )
Date: January 11, 2017 05:08PM

So if the LDS, Inc ranch makes a profit it donates money to the LDS Inc Church until it has no taxable income. The church can use these funds for marble in the latest McTemple, stipends for GAs, property tax on Uctdorks's condo, whatever, then use excess tithing income to invest in buying more timber land in Florida or some other business that might be currently losing money (newspaper, luxury apartment tower in SLC, mall, etc).

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Posted by: cinda ( )
Date: January 11, 2017 03:22PM

Tax deductible expenses? Why would LDS, Inc. need deductions when they don't even pay taxes?

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Posted by: auntsukey ( )
Date: January 11, 2017 05:31PM

Perhaps the business arm of tscc donates luxury items to the Temple and takes a deduction. Might work! ;-)

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Posted by: NormaRae ( )
Date: January 11, 2017 04:22PM

I happen to know that they aren't taxed on a parsonage expense. That's why we pay our minister more in housing allowance than salary. Did you notice in Eyring's pay stub (which I do have a problem with someone posting it--but since they did, I looked), that they used the word "parsonage." Like yeah, when was the last time you heard that word in mormonism?

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Posted by: JayDee ( )
Date: January 11, 2017 05:53PM

Housing allowances are not taxed, but the recipient does pay social security tax on it. Just a unique item in the tax code.

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Posted by: ificouldhietokolob ( )
Date: January 11, 2017 04:59PM

https://www.irs.gov/taxtopics/tc417.html

Biggest relevant item on that page:

Housing allowances can be excluded from taxable income (under certain rules of course).

So if the TSCC's GA "stipend" is marked, all or in part, as a housing allowance, the GA can deduct it from their income. As well as utilities, property taxes, etc. etc. etc.

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Posted by: canadianfriend ( )
Date: January 11, 2017 05:43PM

Questions, questions, questions...but very few answers.

As long as they keep secrets there will be many questions, much conjecture, and relentless suspicion.

The cojcolds is beginning to unravel.

Interesting days ahead.

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