Reported income

[The Anabaptist Jacques]

ianal but in scientology not everything is tax free. donations for auditing are, courses are, books not. Some things are broken into taxable and tax free and show up on your statement as such when you get them.

It is the fact that the "classes" taken in scientology are part of our religious practice that makes them not taxed. There is no value to them except the religious nature of them vs say a class that teaches a secular skill. Thats the theory, Sklar notwithstanding.Google "sklar scientology" for unending debate on this...

I think you have things confused here. Books are taxed by most state governments becasue they are retail sales. These are state and local sales taxes.

Auditing and training are not tax free because they claim to be a religion. They are tax free because they are a service and not a retail sale. Again, this is state and local taxes.

Auditing and training are deductible items on an individual's 1040 because they are considered a religious donation. It is not the same thing as being "tax free" from sales taxes.

The FICA rules have been covered AnonMary.

The reason churches are not taxed in America is becuase the First Amendment says "Congress shall make no laws respecting religion." Respecting here means "in regards to," not in the sense of showing deferrential regard.

The Anabaptist Jacques

[Alanzo]

I think you have things confused here. Books are taxed by most state governments becasue they are retail sales. These are state and local sales taxes.

Auditing and training are not tax free because they claim to be a religion. They are tax free because they are a service and not a retail sale. Again, this is state and local taxes.

Auditing and training are deductible items on an individual's 1040 because they are considered a religious donation. It is not the same thing as being "tax free" from sales taxes.

The FICA rules have been covered AnonMary.

The reason churches are not taxed in America is becuase the First Amendment says "Congress shall make no laws respecting religion." Respecting here means "in regards to," not in the sense of showing deferrential regard.

The Anabaptist Jacques

In fact, there is a landmark Tax case in Tax Court against the Church of Scientology and L Ron Hubbard where this distinction was central to the trial.

Prior to this case, all kinds of tapes and books were being sold by evangelists and cult leaders of all types. But when the IRS hauled LRH into court as a writer who made the selling of his books and tapes central to the religion he set up, the decision changed religion forever in the US.

I sat and read it in a library once back in the 80s. It's something like "The Internal Revenue Service Vs. The Church of Scientology of California" or something like that, circa 1968.

Very interesting reading. And it shows the impact that Scientology has had on the society.

Probably the only one....

[The Anabaptist Jacques]

In fact, there is a landmark Tax case in Tax Court against the Church of Scientology and L Ron Hubbard where this distinction was central to the trial.

Prior to this case, all kinds of tapes and books were being sold by evangelists and cult leaders of all types. But when the IRS hauled LRH into court as a writer who made the selling of his books and tapes central to the religion he set up, the decision changed religion forever in the US.

I sat and read it in a library once back in the 80s. It's something like "The Internal Revenue Service Vs. The Church of Scientology of California" or something like that, circa 1968.

Very interesting reading. And it shows the impact that Scientology has had on the society.

Probably the only one....

That had to be about income taxes on the income from the books, not sales taxes on the sale of the books. The IRS doesn't deal with state sales tax issues.

The Anabaptist Jacques

[Alanzo]

That had to be about income taxes on the income from the books, not sales taxes on the sale of the books. The IRS doesn't deal with state sales tax issues.

The Anabaptist Jacques

Well, prior to this case, many religious leaders were making lots of cash, tax free, of all sales of items such as books and tapes because they claimed they were religious and thus not subject to taxes.

After this case, all items such as books and tapes were subject to all taxes when sold by religious institutions.

IANAL, but from my understanding, it was a landmark case.

It was also probably when the GROSS BOOKSALES (GBS) stat started being counted separately from GROSS INCOME (GI) stat in Churches of Scientology.

[The Anabaptist Jacques]

Well, prior to this case, many religious leaders were making lots of cash, tax free, of all sales of items such as books and tapes because they claimed they were religious and thus not subject to taxes.

After this case, all items such as books and tapes were subject to all taxes when sold by religious institutions.

IANAL, but from my understanding, it was a landmark case.

It was also probably when the GROSS BOOKSALES (GBS) stat started being counted separately from GROSS INCOME (GI) stat in Churches of Scientology.

That's what I was saying. It was not about sales taxes, it was about paying income taxes on the profit from the sale of books.

the Anabaptist Jacques

[Alanzo]

That's what I was saying. It was not about sales taxes, it was about paying income taxes on the profit from the sale of books.

the Anabaptist Jacques

You are probably right.

But I need to have the last post on this particular topic of this tax case.

Because I'm the one who found it in a book in a library 20 years ago.

[alex]

I think you have things confused here. Books are taxed by most state governments becasue they are retail sales. These are state and local sales taxes.

Auditing and training are not tax free because they claim to be a religion. They are tax free because they are a service and not a retail sale. Again, this is state and local taxes.

Auditing and training are deductible items on an individual's 1040 because they are considered a religious donation. It is not the same thing as being "tax free" from sales taxes.

The FICA rules have been covered AnonMary.

The reason churches are not taxed in America is becuase the First Amendment says "Congress shall make no laws respecting religion." Respecting here means "in regards to," not in the sense of showing deferrential regard.

The Anabaptist Jacques

No, I mean that you do not get to deduct the cost of books, but do the donation for auditing. This is regarding your federal income tax.

The church gives you a printout every year.

Been out a while I see...

[The Anabaptist Jacques]

No, I mean that you do not get to deduct the cost of books, but do the donation for auditing. This is regarding your federal income tax.

The church gives you a printout every year.

Been out a while I see...

Ok, Cool. But Alonzo is still going to get the last word.

The Anabaptist Jacques

[Alanzo]

Ok, Cool. But Alonzo is still going to get the last word.

The Anabaptist Jacques

Thank you.

[Bea Kiddo]

What is this thread about?

I am confused....