Can I be an "ordained minister" and trade tax-free?

Quote from J.P.:

Jokes aside (but don't get me wrong, I appreciate them), why can't I establish a small church and pay no taxes? There seems to be a paucity of information about this on the IRS site. What are the specific criteria that need to be met to exempt you from taxes? You have these TV evangelists flying around in private jets, living high, investing massive donations and accumulating capital gains all tax-free. And there's the little guy in the strip mall doing it on a low level. What are the minimum requirements?

I'm not talking about doing anything illegal. What does it take to be a legitimate church in the eyes of the IRS and live tax-free?
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I think you are confused. The church doesn't have any income therefore it pays no taxes. If you trade, I'm assuming the goal is to make money no? If that's the case, you have to pay taxes on that income. I have no idea why you think they don't pay income taxes.

And to further clarify, the pastor or priest pays self employment taxes on his personal income that the church itself pays him and usually pays MORE taxes then most people since he has to file as a self employed person.
 
Quote from Maverick74:

I think you are confused. The church doesn't have any income therefore it pays no taxes. If you trade, I'm assuming the goal is to make money no? If that's the case, you have to pay taxes on that income. I have no idea why you think they don't pay income taxes.

And to further clarify, the pastor or priest pays self employment taxes on his personal income that the church itself pays him and usually pays MORE taxes then most people since he has to file as a self employed person.
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You are incorrect; I am ignorant, not confused.

You say the church doesn't have any income? You lost me there. The major established churches have gargantuan income. I'm guessing you mean that contributions are not classified as income for tax purposes?

Thanks for the information on self-employment taxes.

And the point you allude to, that the income churches obtain from investments is taxed, well, that's the piece of information I was looking for and that would nix my plan.

Regards.
 
It seems to me that if your church gets 501(c)(3) status, and you hold services during certain hours of the day Monday through Friday (except Holy Days, of course), and the church services are comprised of a series of specific actions performed on a trading platform, then I imagine any profits resulting from the church services would be tax exempt, no?

:cool:
 
Quote from J.P.:

You are incorrect; I am ignorant, not confused.

You say the church doesn't have any income? You lost me there. The major established churches have gargantuan income. I'm guessing you mean that contributions are not classified as income for tax purposes?

Thanks for the information on self-employment taxes.

And the point you allude to, that the income churches obtain from investments is taxed, well, that's the piece of information I was looking for and that would nix my plan.

Regards.
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Correct, a contribution is not earned income and the tax code STATES THIS. This is why many parents "gift" money to their children to avoid probate taxes upon death. I suppose a church could sell cookies and that money would be classified as income,but financial offerings from the patrons are not income. This definition extends outside the church. I can gift you money if I wanted to. There is a personal gift allowance for individuals that maxes out your allowed contribution.

Now regarding the church, the church's board usually pays the minister or pastor. The minister does not pay himself. The board collects the money and votes on how much he should receive given the other expenses the church has. This income has to be declared by the minister or pastor as self employment income and he is responsible fully for his self employment taxes.

BTW, a simple Google search would have provided you with all this info.
 
Quote from Maverick74:

Correct, a contribution is not earned income and the tax code STATES THIS. This is why many parents "gift" money to their children to avoid probate taxes upon death. I suppose a church could sell cookies and that money would be classified as income,but financial offerings from the patrons are not income. This definition extends outside the church. I can gift you money if I wanted to. There is a personal gift allowance for individuals that maxes out your allowed contribution.

Now regarding the church, the church's board usually pays the minister or pastor. The minister does not pay himself. The board collects the money and votes on how much he should receive given the other expenses the church has. This income has to be declared by the minister or pastor as self employment income and he is responsible fully for his self employment taxes.

BTW, a simple Google search would have provided you with all this info.
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You're right, I got exhausted on the IRS site and was too tired to think about sorting through the anticipated contradictory information on Goog, but I should have.
 
Quote from NoDoji:

It seems to me that if your church gets 501(c)(3) status, and you hold services during certain hours of the day Monday through Friday (except Holy Days, of course), and the church services are comprised of a series of specific actions performed on a trading platform, then I imagine any profits resulting from the church services would be tax exempt, no?

:cool:
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Sounds good to me, but you go first.
 
I almost did this and the rules are that donations are tax free as long as they are under a certain amount. I don't remember the number but it was something like anything under $100 is tax free.

As for becoming a pastor/priest/con artist. All you have to do is say that God spoke/had a vision/ or whatever you want and that you want to serve him. After that a few hundred bucks and you are free to do as you please. It is great! You can tell families how to think, what they can and can't do and you are the closest thing next to God.

All of this tax free stuff is given to churches because the IRS views religions as "Providing a valuable service to the community". I guess it keeps the flock inline and keeps people from thinking too much. If I were a lot smarter I would have figured out a way to milk that sacred cow!

It is a awesome scam that has the approval of everyone.
 
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