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Pastor

Continuing education for ministry leaders
Pastor
Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

Previous Lessons

Week of February 9

Loans to Pastors - Part 1

This Week's LessonWeek of February 2

Loans to Pastors - Part 2

Introduction

This lesson focuses on Part 2 of Loans to Pastors. You can review the Executive Summary to obtain the key points or read the Weekly Lesson for a more thorough presentation of this topic. Start by completing the following interactive quiz to test your knowledge.

A church loans its senior pastor $20,000 to assist with the down payment on a new home. The pastor signs a promissory note agreeing to pay back the loan amount in five annual installments of $4,000, without interest. What are the tax consequences, if any, of this transaction?

Weekly Quiz

Instructions Click on the correct answer for each of the following questions.

Executive Summary

Many churches have made loans to a pastor. But few church leaders understand the legal and tax implications associated with such loans. For example, the nonprofit corporation laws of many states prohibit incorporated churches from making loans to ...

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