Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Which of the following statements regarding a parsonage allowance isfalse? A parsonage allowance should not be included in the minister's W-2 wages A parsonage

1. Which of the following statements regarding a parsonage allowance isfalse?

A parsonage allowance should not be included in the minister's W-2 wages

A parsonage allowance is generally excluded from gross income.

A parsonage allowance is not subject to self employment tax.

A parsonage allowance allows the minister to rent or purchase a home

2. Sister Francine is a member of a tax-exempt religious order, took a vow of poverty as part of her membership, and earns income as an agent of that order. The income is

Taxable as gross income

Exempt from income tax only

Exempt from self-employment tax only

Exempt from income and self-employment taxes

3. A minister must report as gross income all of the following except:

Compensation from the employing church

Fees and honoraria paid directly by parishioners

Parsonage allowance designated by the church

Income and self-employment taxes paid by the church

4. A housing allowance is included in the gross income if the allowance exceeds the home's Cost basis

Sales price

Appraised value

Fair rental value

5. The burden of proving donative intent rests with

The government.

The taxpayer.

The donor.

The court.

6. Payments received under a pension plan by a retired minister may be designated as a

Gift

Compensation

Honoraria

Parsonage allowance

7. Generally, the minister must report as gross income any payments received for________.

fees for weddings, funerals and the like given directly to the church.

ministerial services

gifts received for services.

business expense allowances for travel and the like received under an accountable plan

8. An ordained minister receives an annual salary of $36,000 and lives in a church-owned parsonage. The parsonage has a fair rental value of $9,600 a year. For self-employment tax purposes, the minister's gross income is

$0

$9,600

$36,000

$45,600

9. When a minister receives no compensation for ministerial services and incurs out-of-pocket costs, those costs are deductible as

Charitable contributions

Business expenses

Self-employment tax

Employment expense

10. Where the minister receives property or money__________?

compensation is always included in income and gifts are excluded from income.

compensation and gifts must be included in income.

the value of a parsonage allowance must be included in income.

any gifts must be included as income from self-employment.

please i need help with questions and answwers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions