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"EDITED ONLINER DIALOGS - EODs"

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TOPIC:  Personal Use of Ministry physical Assets                                                           ORIGINATED:   December 2009

TOPICAL OVERVIEW:   Christian Ministries sometimes allow their staff to use their physical assets for personal purposes.   Below is a discussion about the use of a Ministry's vehicles by the staff for personal reasons.

FILE: 2062-09                                                                                                                               UPTD:  April 24, 2010

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          FROM:  Onliner:  To         Jim Bramer,  Retired Auditor-CPA   

 

    I have unsuccessfully searched the web for information regarding whether or not vehicles provided to clergy and other religious employees are considered taxable income to them when they are used by them for personal use.   We are a Catholic archdiocese.    

TO:   Onliner:   FROM: Jim Bramer,  Retired Auditor-CPA  

            Thank you for connecting up,  I trust you find the following links of value in your pursuit of this important matters at your Ministry.  

                       IRS Publications     http://www.bcidot.org/all/0110-77.html
                       Vehicle Expenses   http://www.bcidot.org/all/0076-02.html
                       Clergy stipends       http://www.bcidot.org/all/0037-02.html
                       Finance Policies      http://www.bcidot.org/chu/5005-08.html  

  As you can see,  there are tax consequences for personal use of Ministry vehicles.  I trust the above processes re Ministry use thereof are included with your written Finance Policies.
 

FROM:  Onliner:

As indicated above, we are a Catholic archdiocese where Ministry vehicles are provided to priests and nuns, not to lay employees.   As you know these special staffers have no taxable income and, of course, do not receive W-2s.  An example of their use of Ministry vehicles is when they go to their family to another state strictly for  personal reasons.

TO:   Onliner:  

         My view is that this would be a part of your overall Finance Policies as to the personal use of Ministry physical assets and you therefore would require something like the following to take place as to personal use of your vehicles:

>>  Determine the miles involved.
            >>  Compute the amount involved by using the prevailing  IRS mileage rate - see 0076-02 above.
            >>  If the amount is something like $100.00 or less ---  then disregard as irrelevant.
            >>  If the amount is more than $100.00 then require expense reimbursement from such staffers.
            >>  If this does not happen, then they get a 1099 at year end.

FROM:  Onliner:

 

           This is not going to sit real well with my bosses, but I will share accordingly.  Any other comments?

TO:   Onliner:  

        Yes ---  I would suggest that you retain a Ministry savvy attorney and get their written opinion.

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         As most of you know, at  www.bcidot.org   we dialog by email with Onliners regarding Ministry Finance (MinFin) matters.  Above are what we call "Edited Onliner Dialogs", or edited versions of actual dialogs with some of you;  but we have honored your privacy and not used your name or that of your Ministry.  Our purpose is to make topical MinFin information available to any interested  Ministry Finance Team  so we all can learn from these perspectives.   Thanx - Jim Bramer, Auditor-CPA  - Proverbs  9:10.    Jim@bcidot.org  

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