An one time gift of 45000 was given to the pastor of our church for housing. The church gave it directly to the mortgage bank. Is it considered a gift through the church or income through the church?

Thanks.

excon

Hello Lowell:

If the church is a 501.c.3 charitable organization, then the DONATION is fully deductible by the donor.

However, I suggest you be clear in your terminology. The $45k was given to the church - not the pastor. The church is exempt from taxes. The pastor isn't. Clearly, part of the pastors pay includes housing, and he has to pay taxes on that amount. I don't know what his salary arrangements are, but it doesn't change because of this gift.

excon

ScottGem

To further confuse this, I gather that the pastor is living in a building owned by the church that currently has a mortgage. If that's the case and the church is exempt under 501(c)(3), then the donor can take a tax deduction. The money was a gift to the church and appears to have been applied according to the donor's wishes.