Marly or folowp Question 53 of 75 Mark is an ordained minist

Marly or folowp Question 53 of 75 Mark is an ordained minister. Mark\'s salary from his employing church last year was $31,000. The church did not designate any of his salary as housing allowance. Mark spent $10,000 to rent his home last year. How much of Mark\'s salary must be included when figuring net income for self-employment tax? O $21,000 $31,000 O $41,000 $51,000

Solution

Church employee needs to pay self-employment tax if they are paid more than $108.28.

For self-employment tax, expenses related to business can be deducted.

Since church doesn\'t allow for housing allowance, therefore rent cannot be considered as a business expense.

Hence taxable amount will be $31,000.

Thus second option is correct.