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A minister receives an annual salary of $16,000 in addition to the use of a church parsonage with an annual rental value of $6,000.the minister accepted this minimal salary because he felt that was all the church could afford to pay. He plans to report these amounts on his income tax return but he is uncertain how to treat the cash gifts he receives from members of his congregation. These gifts were made out of love and admiration for him. During the year the congregation developed a regular procedure for making gifts on special occasions. Approximately two weeks before each special occasion when the minster was not present, the associate pastor announced before the service that those who wished to contribute to the special occasion gifts could do so by placing in envelopes and giving them to the associate who would give them to the minister. Only cash was accepted to preserve anonymity. The church did not keep a record of the amounts given nor the contributors, but the minister estimates that these gifts amount $10,000 in the current year. How should he treat these gifts?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M944153

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