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Question

We are sponsors of a church (tax exempt) youth group who will have a summer mission trip this summer. The kids want to sell coupon books to help pay their way. As long as the money is not used outside the cost of the trip and the trip is 80% missions work, does the money each kid earns have to be reported as income? Or can it just be turned into the church and allocated back to the student for their trip costs.

Submitted: 72 days and 22 hours ago.
Category: Tax
Value: $25
Status: CLOSED

Accepted Answer

XXXXXX,

 

The selling of products of exempt functions (which yours would qualify as) as not subject to Unrelated Business Tax. The kids should turn in all monies to the church and the church would fund the exempt function. Please let me know if you have further questions.

 

Regards,

 

Mark D

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Expert: Mark D
Pos. Feedback: 99.6 %
Accepts: 
Answered: 9/11/2009

Tax Preparer

MBA, CTEC Registered, CPA Firm Experience with Business and Individual Tax Returns and Issues

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