Jump directly to the Content

Clergy

Tax Court disallowed the deductibility of a minister's travel and transportation expenses

The Tax Court disallowed the deductibility of a minister's travel and transportation expenses because of a lack of substantiation.

The court observed that section 274(d) of the Internal Revenue Code specifies that travel and transportation expenses (including meals and lodging while away from home overnight) are not deductible unless a taxpayer substantiates by adequate records the amount of such expenses, the time and place of the travel, and the business purpose of the expenses.

In this case, the minister's receipts and records failed to substantiate all of these elements. For example, some receipts were for "oil and gas," but there was no proof that the oil and gas were used for business purposes.

The court acknowledged that the minister doubtless had been reimbursed by his church for some legitimate travel and transportation expenses that actually had been incurred. However, ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • January 2, 1989

Related ResourcesVisit Store

Protecting Your Tax-Exempt Status
Protecting Your Tax-Exempt Status
Understand the requirements of your tax-exempt status.
Church Compensation - Second Edition
Church Compensation - Second Edition
From Strategic Plan to Compliance
20 Finance Questions Churches Ask
20 Finance Questions Churches Ask
Richard Hammar answers relevant tax and finance questions for church leaders.
Sample Compensation Report
Sample Compensation Report
A ChurchSalary.com Sample Report for Determining Fair Compensation