Question
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
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