"Jimmy" wrote in message
...
On Fri, 21 Nov 2003 00:15:00 -0600, "TURTLE"
wrote:

Right concept, wrong specifics:

You will see if a church filed a 1040 IRS form they would not pay a penny
if
they filed just like you or me. The church is the business , repair to
the
business / church sturcture / cat 5 wire to phones , Salary to preacher
and
secretary , automobles to preacher to see the members , and just about
everything they do is a deduction under 1040 form of the IRS.

Every *business* deducts their expenses from their revenues to
calculate any "taxable profit".

The church
does not sell a product, profittiable item [ in most cases ] , and is
concidered as Not For Hire. they just don't make money from sales of any
kind but some have bake sales or what ever but the sales can not equal
the
expences of the church that year or they can be taxed.

Actually, they can make all the money they want. Being "non-profit"
does not mean that you don't *make* a profit, it means that you are
not *taxed* on your profits.

now the preacher ,
secretary , and workers of the church will pay income taxes just like you
or
I.

Yep.

Here is the point here. All Churches pay the say income taxes as Exxon
Co.
U.S.A. last year. Exxon made last year $6.2 Billion dollars and paid zero
income taxes. The churches just does the same thing.

Well, Exxon needs a tax incentive to make sure that they keep
exploring for oil... I mean, there's no real incentive to do it when
they'd only make a few billion $'s each year if fully taxed :-)



This is Turtle.

Yes , i do know the difference between Exxon and a church but the concept is
the same. Exxon when making a profit will account for the money being made
by matching up a expence that will account for a lose which it can be
deducted from the profit. Now the church will when they make a profit. They
will have to ear mark the money as a Fund for something to be paid for now
or in the future. The Church still has to account for the profit but they
HAVE to put the word "fund" behind any account they make a profit on or in.
This profit becomes a future fund to be used for charity or repair of the
church system.

Now they do not have to be accounted very little to the IRS because of
charitiable status and can make a profit and not pay taxes on it , but so
does Exxon but in a different way. A example here. The First United
Methodist Church is a Corperation and files as charitiable Corperation
status just like Exxon but Exxon is a for profit corperation status.

I did leave myself open when I said just like Exxon but i should have said
just " Both pay no taxes'' .

TURTLE