Tax Deduction

Page 1 of 2 (26 items) 1 2 Next >
This post has 25 Replies | 2 Followers

Posts 185
Steve Johnson | Forum Activity | Posted: Tue, Apr 10 2012 12:44 PM

Any clever accountants out there figured out how to deduct Logos taxes off of their 1040, except as a "Schedule A" itemized deduction?

Thanks,

Steve

Pastor, rural Baptist church

Notebook: Dell Precision 4400; Core 2 Duo, 2.5gh; 8Gb RAM; NVIDIA FX 770M w/ 512Mb; Win7 Pro 64-bit; Novabench 510; WEI 5.9

Netbook: MSI Wind 12: Novabench 198; WEI 3.1

 

 

Posts 570
Rev Chris | Forum Activity | Replied: Tue, Apr 10 2012 1:48 PM

Steve Johnson:

Any clever accountants out there figured out how to deduct Logos taxes off of their 1040, except as a "Schedule A" itemized deduction?

Thanks,

Steve

Are you clergy?  If so, you can run them through your account reimbursable, which is 'above the line'.  Of course, you have to do that within the tax year, not afterward when you are preparing your taxes.

 

Pastor, seminary trustee, and app developer.  Check out my latest app for churches: The Church App

Posts 9090
Forum MVP
Mark Smith | Forum Activity | Replied: Tue, Apr 10 2012 2:46 PM

Logos taxes? HMM. Are you somewhere that collects sales tax on Logos resources? If so sales tax can only be deducted on Schedule A AFAIK.

Chris' suggestion that your church give you a professional expenses reimbursement allowance is a good one. They set the limit and you can be reimbursed up to the limit and it is non-taxable as income and probably purchases would be non-sales taxable if the Logos account is set up with the church's tax exempt ID.

Pastor, North Park Baptist Church

Bridgeport, CT USA

Posts 165
Wayne | Forum Activity | Replied: Tue, Apr 10 2012 3:03 PM

Check out using Form 2106 to for  Unreimbursed employee expenses.  That could work if you are clergy and can be deducted before you pay Social Security taxes.

 

 

Posts 3661
BillS | Forum Activity | Replied: Tue, Apr 10 2012 3:07 PM

Rev Chris:

Are you clergy?  If so, you can run them through your account reimbursable, which is 'above the line'.  Of course, you have to do that within the tax year, not afterward when you are preparing your taxes.

If you're clergy, this is the only way I know of... 

To ensure you meet USA IRS regs, ensure annual "contract" specifies the amount of accountable reimbursements (this line item could either be Professional Expenses or Book Purchases, but it should be specified up front). And as an accountable reimbursement plan the church needs to pay in the exact amount, which would be the total book cost (including sales tax).

The easiest / safest way (from an audit standpoint ) is for you to pay with a credit card that's used ONLY for church expenses. Then have the church reimburse THE CREDIT CARD, NOT YOU. Then it's clear that it's a non-taxable business expense. 

Blessings!

Grace & Peace,
Bill


Asus GF63 8RD, I-7 8850H, 32GB RAM, 1TB SSD, 2TB HDD, NVIDIA GTX 1050Max
Samsung S9+, 64GB
Fire 10HD 64GB 7th Gen

Posts 178
DavidS | Forum Activity | Replied: Tue, Apr 10 2012 3:14 PM

Steve Johnson:

Any clever accountants out there figured out how to deduct Logos taxes off of their 1040, except as a "Schedule A" itemized deduction?

If you are clergy and have funeral or wedding income you need to claim as income, you can claim it on Schedule C and claim Logos and any books and out of pocket expenses on the same form. You can do this even if it is a loss which will reduce your taxable income. Being clergy is important to be able to do this. Most clergy also have to file a Schedule SE for Social Security which the church does not pay for clergy.

Posts 27674
Forum MVP
JT (alabama24) | Forum Activity | Replied: Tue, Apr 10 2012 3:28 PM

Mark Smith:
Logos taxes? HMM. Are you somewhere that collects sales tax on Logos resources?

I assume that Logos collects tax on all sales to residents in Washington State. I guess that would now mean residents in Arizona too.

OSX & iOS | Logs |  Install

Posts 9090
Forum MVP
Mark Smith | Forum Activity | Replied: Tue, Apr 10 2012 3:52 PM

alabama24:
I assume that Logos collects tax on all sales to residents in Washington State. I guess that would now mean residents in Arizona too.

I would, too. But 'Logos taxes' seemed vague so I asked.

Pastor, North Park Baptist Church

Bridgeport, CT USA

Posts 185
Steve Johnson | Forum Activity | Replied: Tue, Apr 10 2012 3:54 PM

Ud Laugh 2:

If you are clergy and have funeral or wedding income you need to claim as income, you can claim it on Schedule C and claim Logos and any books and out of pocket expenses on the same form. You can do this even if it is a loss which will reduce your taxable income. Being clergy is important to be able to do this. Most clergy also have to file a Schedule SE for Social Security which the church does not pay for clergy.

Thank you, friends, for ALL the posts. Ud Laugh 2's suggestion is the most attractive to me: I posted above about my reservations in using the church's accountable reimbursement account.  Anyone else using the Schedule C to deduct Logos expenses?

Pastor, rural Baptist church

Notebook: Dell Precision 4400; Core 2 Duo, 2.5gh; 8Gb RAM; NVIDIA FX 770M w/ 512Mb; Win7 Pro 64-bit; Novabench 510; WEI 5.9

Netbook: MSI Wind 12: Novabench 198; WEI 3.1

 

 

Posts 2331
Ronald Quick | Forum Activity | Replied: Tue, Apr 10 2012 4:36 PM

I am employed as a counselor so I have been able to deduct some individual counseling resources that I have purchased.

Posts 2401
David Ames | Forum Activity | Replied: Tue, Apr 10 2012 4:51 PM

alabama24:

Mark Smith:
Logos taxes? HMM. Are you somewhere that collects sales tax on Logos resources?

I assume that Logos collects tax on all sales to residents in Washington State. I guess that would now mean residents in Arizona too.

Until they change the rules on taxing INTERNET sales, Logos (and other companies) needs to collect sales tax only if they have an office in the state. 

[[Have worked in IT on Sales Taxes for a company that had Nexus (I think that is the correct term) in many states but not all]]

 

Posts 291
Bob Schlessman | Forum Activity | Replied: Tue, Apr 10 2012 6:18 PM

Ud Laugh 2:

Most clergy also have to file a Schedule SE for Social Security which the church does not pay for clergy.

Unless of course you have filed for and received an exemption. Then you do not have to pay SE Tax. It has to be based on religious objections not just because you think Social Security is a bad idea. I filed for the exemption the first year I was in ministry and it was approved. You have two years from the date you begin working in full-time ministry to apply for the exemption. After that you must pay SE tax.

Posts 27674
Forum MVP
JT (alabama24) | Forum Activity | Replied: Tue, Apr 10 2012 7:32 PM

David Ames:
Until they change the rules on taxing INTERNET sales, Logos (and other companies) needs to collect sales tax only if they have an office in the state. 

Which is why I said they probably collect taxes in Washington State & Arizona.

OSX & iOS | Logs |  Install

Posts 570
Rev Chris | Forum Activity | Replied: Tue, Apr 10 2012 7:43 PM

alabama24:

David Ames:
Until they change the rules on taxing INTERNET sales, Logos (and other companies) needs to collect sales tax only if they have an office in the state. 

Which is why I said they probably collect taxes in Washington State & Arizona.

Not exactly true.  There are some states that have rules against this.  When I lived in Texas I had to pay Logos sales tax.

Pastor, seminary trustee, and app developer.  Check out my latest app for churches: The Church App

Posts 570
Rev Chris | Forum Activity | Replied: Tue, Apr 10 2012 7:45 PM

Bob Schlessman:

Ud Laugh 2:

Most clergy also have to file a Schedule SE for Social Security which the church does not pay for clergy.

 

Unless of course you have filed for and received an exemption. Then you do not have to pay SE Tax. It has to be based on religious objections not just because you think Social Security is a bad idea. I filed for the exemption the first year I was in ministry and it was approved. You have two years from the date you begin working in full-time ministry to apply for the exemption. After that you must pay SE tax.

Also you have to inform your ordination board of the theological stance you are making.

Pastor, seminary trustee, and app developer.  Check out my latest app for churches: The Church App

Posts 2692
DominicM | Forum Activity | Replied: Wed, Apr 11 2012 12:21 AM

Arent we forgetting one thing, its all Gods money..

Did he promise to supply your needs or not?

That includes monies to pay taxes :D

Never Deprive Anyone of Hope.. It Might Be ALL They Have

Posts 18668
Rosie Perera | Forum Activity | Replied: Wed, Apr 11 2012 12:56 AM

DominicM:

Arent we forgetting one thing, its all Gods money..

Did he promise to supply your needs or not?

That includes monies to pay taxes :D

And money to buy Logos books... Smile

Posts 2692
DominicM | Forum Activity | Replied: Wed, Apr 11 2012 1:16 AM

Rosie Perera:

And money to buy Logos books... Smile

Yes, the ones we need Stick out tongue sadly not all the ones we desire  from our greed

Never Deprive Anyone of Hope.. It Might Be ALL They Have

Posts 570
Rev Chris | Forum Activity | Replied: Wed, Apr 11 2012 7:07 AM

DominicM:

Arent we forgetting one thing, its all Gods money..

Did he promise to supply your needs or not?

That includes monies to pay taxes :D

So instead of the 'prosperity gospel', is this the 'taxation gospel'? Stick out tongue

Pastor, seminary trustee, and app developer.  Check out my latest app for churches: The Church App

Posts 2692
DominicM | Forum Activity | Replied: Wed, Apr 11 2012 7:10 AM

Rev Chris:
is this the 'taxation gospel'?

Render unto Ceasar...

Never Deprive Anyone of Hope.. It Might Be ALL They Have

Page 1 of 2 (26 items) 1 2 Next > | RSS