Ms.MojoRisin
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This is tax fraud, plain and simple. You should report this "church" to the IRS. You might get a reward from the IRS if you have written proof of what they are doing.
Do NOT take your rent as a charitable donation. It will come back to haunt you.
By the way, "Kelly" is incorrect. Rental income is not related to the church's charitable purpose and is called unrelated business income and they SHOULD pay taxes on it. |
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Judy1
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You won't get in trouble as long as you don't try to deduct the rent as a charitable contribution. The pastor, though, is committing tax fraud by doing this - nice example for a pastor to set. You could report him to the IRS for this but aren't legally required to. |
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leigh
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hi, i have 20 homes, 12 are rentals. i am not an acct. but...you are paying rent...that is a fact. it is not a donation. do not sign a receipt that says donation. say that is not true, and ask for a receipt without those words. that is your right. they are trying to avoid taxes, that is all.
they do not have to do that. they can claim depreciation, the insurance of the property, and other expenses. it will not cost them anything in the end. |
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Veritas et Aequitas ()
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Do not do it. If the church owns the property then fine but if he personally owns it then no. Don't get suckered into this fraud. Many churches are defrauding the government and it's really a shame because those are supposed to be some of the most upstanding people.
EDIT: I did some reading and there is no way this is legit, in any form. Do not write donation on any check. Write rent and keep yourself out of it. I can't believe they would even put you in that position. Find a new church and maybe ask him how this is even legal? See what he says and if he minds you discussing the situation with the IRS. |
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Deb S (SFECU) pray4revival
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You need to do what is right. That way you will not have to worry about getting in trouble in any way. And God will bless you for being righteous.
Contact someone who does taxes for people for a living and ask that person or business for advice. I'm sure they will tell you what the laws are concerning this. |
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cridler
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I am a pastor and this is illegal and disgusting. Don't do it and tell them if they insist on doing it you will report them to the IRS and they will lose their tax free status and gain much negative publicity.
On the moral part this is a sin and unworthy of anyone who wants to call themselves Christian. That is part of the reason we have such an image problem today. |
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Izzy
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Do you want to claim the whole amount as a donation? Why are you not filing this year? Unless you are a refugee and you are using their property to get on your feet. The church does not pay taxes on amounts received as it is a non-profit organization. I'm surprised the diocese hasn't been informed of this situation as now a days donations like this isn't acknowledged. |
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jen
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If they get caught then I am almost positive that you could too. Probally have to pay back the funds if you get any returned from this. I wouldn't claim them as a donation if I were you. Also if you are paying them rent and the receipt says donation you are hurting yourself. If there is ever a problem and the church says you are not paying rent what proof do you have? None you will have your donation receipts. I know that you think a problem like this would not happen with a church, but you also wouldn't think that a church would try and cheat the system. |
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Earth2Dee
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The canceled checks are a record of your history of paying rent.
Except yours say "donation". This can come back and haunt you later. I would go to the church and ask for an explanation of why this is happening. It's possible that if the rep is making this a requirement, the church has no idea. |
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michael971
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The only way you could claim it is if the rent was greater than the fair market value of rentals in your area. You could then deduct the difference. |
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kelly
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number 1 a church is a nonprofit organization and they do not pay taxes. Number 2 it is better for you to have a donation because you can not claim and get the same tax write offs for paying rent as you do if you paid a mortage company so actually the church is doing you a favor you will get more back on your income |
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