ddanocpa[at]aol.com (Ddanocpa) wrote:

- quote -

Sounds like a paid vacation to me, and would be included on
his W-2 as additional wage income. No matter how noble you
make it sound, it still does not pass the "duck test" (if it
walks like a duck, quacks like a duck, .....). In general,
the IRS would consider this a personal nondeductible expense
-- regardless of who pays for it.

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We are a United Methodist church, exempt under 501 (c) (3).
At his request, we would like to send our pastor on a
continuing education trip to Russia to study the Russian
Orthodox Church, as a portion of his compensation package.
We feel that this trip would enrich his spiritual experience
as well as contribute to the missions and goals of the
church. The question, can we exclude all or part of the cost
of the trip from his reportable income on his W-2? The
specifics of the trip are:

1) He will be accompanied by his wife at no cost to the
church.
2) He asserts that he would not take the trip were it not
for the educational experience.
3) the trip is not sanctioned by the United Methodist Church
4) Several others including pastors will be on the same
trip.
5) He will travel by scheduled air carrier from the U.S. to
London, then by cruise ship to Russia with several stops
at various European ports along the way. The method of
return transportation is uncertain.
6) He will be in Russia approximately 3 days for study.
7) The entire trip will take about 10 days

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