This Week's LessonWeek of December 16
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?