What expenses are considered reimbursable business expenses?

The following are examples of reimbursable (tax deductible) business expenses:  Education – Tuition, fees, books, supplies, and (if the school is away from the pastor’s home area) transportation, meals, and lodging are reimbursable.  Education expenses which qualify your pastor for a new trade or business (such as carpentry, etc.) are not reimbursable.  Meal & Entertainment – Reimburse a pastor 100% of his cost for meals and entertainment.  When his spouse is present because the spouse of the person being entertained is present, her meal is reimbursable.  The cost of meals for the pastor’s children are never deductible.  Mileage – The pastor should keep a log of his miles (including the mileage at the beginning and end of each year) and be reimbursed for his business miles at the standard mileage rate.  Travel – The cost of train, airplane, boat, bus fare, auto rental, taxi, hotel, motel, meals, gratuities, telephone, travel insurance, baggage charges, cleaning, and laundry costs are reimbursable when a pastor travels on business.  A pastor might travel to attend a church convention, a speaking engagement, to lecture, to perform a wedding or a funeral, to provide pulpit supply, an evangelistic meeting, on deputation, to church camp, etc.

Attention: Tax Law is subject to interpretation. Please be advised that the material contained on this Web site is for information only and is not intended to be a substitute for professional legal advice. The Stewardship Services Foundation endeavors to update the information on this site on a regular basis, but cannot guarantee its accuracy at all times.