- 11 -
Petitioner was appointed by a bishop to positions he held.
Under the Discipline, in order to remain a Methodist minister
petitioner was required to accept such positions.
Petitioners have failed to distinguish the instant case from
the facts of Weber v. Commissioner, supra.
We conclude that for 1990 and 1991, petitioner should be
treated as an employee of the United Methodist Church.
Petitioners’ expenses of $10,605 for 1990 and $19,314 for 1991
relating to petitioner’s work as senior pastor and as district
superintendent (subject to further adjustments agreed to by the
parties) are not allowable for income tax purposes as Schedule C
business expenses but only as miscellaneous itemized deductions
on Schedule A, subject to the 2-percent floor.
As explained, even though petitioner, for Federal income tax
purposes, is to be treated as an employee, for self-employment
tax purposes, petitioner’s cash compensation and the fair rental
value of the parsonages and the amounts petitioner received
relating to expenses of the parsonages are subject to self-
employment taxes. Sec. 1402(a)(8); sec. 1.1402(a)-11(a), Income
Tax Regs. Accordingly, for self-employment tax purposes, all
amounts received by petitioner as compensation are to be treated
as self-employment income including the stipulated fair rental
value of the parsonages and the amounts petitioner received
relating to expenses of the parsonages.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011