Question

father kelly received 35000 in ministerial earnings of that 32000 was for salary and 3000 was for weddings and there is an allowance of 12000 for parsoage that us excluded. he incurred 6000 of unreimbursed expenses. 5200 is related to his ministerial salary and 800 is related yo weddings. how much expense is deducted

Answer 1

Answer :-

Total Income of Father Kelly = 32000+3000+12000 = 47000

Parsonage Income received by the minister is exempt. Receiving a tax-free rental or parsonage allowance is that the tax code denies a tax deduction for part of the expenses of operating your ministry.

1) Non Deductible portion relating to Ministeral Salary of 5200 = 12000/47000*5200 = $1,328(Approx)

2) Non Deductible portion relating to weddings of 800 = 12000/47000*800 = $ 204 (Approx)

Total Expense deductible = 5200+800-1328-204 = $4468.