New York – There is a chiyuv to give Ma’aser from your income. If you receive an expensive Mishloach Manos do you need to give Ma’aser from it? This was the question asked to Rav Ephraim Greenblatt (Rivevos Ephraim 6:389).
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He answered that he saw in a Sefer Uvacharta BaChaim that Rav Chaim Kreiswirth said in hesped for Rav Yaakov Kaminetzky that Rav Yaakov would report as income and pay taxes on mishloach manos that he received. If so then similarly one should give ma’aser. He concludes by saying that nevertheless the matter needs further research.
Titein Emes L’Yaakov!
Important Note: We try to convey the Tshuva to the best of our ability. We admit that our understanding may not be accurate. One should learn the tshuva to verify the accuracy of our interpretation. Please also understand that this Tshuva may not be the final word on this topic. One should consult a Rav before drawing any conclusions.
This article has not been reviewed by the posek of the AskRevach section, Rav Peretz Moncharsh. Any questions regarding this topic and Halacha L’Maaseh may be asked to him at www.revach.net/ask
just a notice that the rabbi was chief rabbi of antwep and in the good old days on a purim day they would make over 20k CASH so obviously on that u got to give maaser
I don’t understand, since when does ma’aser k’safim apply to non-monetary gifts? Even money given for a specific use (e.g. for rent, etc.), there is certainly a view that such money does not need to have ma’aser deducted. All the more so with mishlo’ach manos, which is not a simple gift but usually an exchange.
Not to chas v’shalom take issue with those more knowledgable than I, but I simply do not understand.
how the oi’lem should realize honest taxes is just as much a chiyuv as shloach manos. r’ yaakov was a true tzaddik
There is only one problem with this VORT.Under U.S. law the receipient of a gift is NOT required to pay any income tax.
The Har’zg held that only gifts with the value of a “goat” require one to set aside ma’aser. Since most of us today have no idea what a goat sells for, there is a rule of reason that governs according to most rabbonim.
In this scary economy why create chumra’s that will put additional financial pressure on people?
In Banks v. Commissioner, 62 T.C.M. 1611 (1991) special offerings were given to a minister on four separate occasions during the year. The offerings were in addition to the minister’s salary and amounted to more than $40,000 annually. The members of the church who gave the offerings did not take a tax deduction for their contribution because their intent was to give a true gift. However, the Commissioner was able to use the Duberstein case and show that the gifts were in fact for services rendered.
Testimony of congregation members indicated that transfers were designed to compensate the minister for the excellent work the minister had done and to encourage them to remain with the congregation. The court also found that the amounts transferred to the minister were part of a highly structured program for transferring money to the minister on a regular basis. The regularity of the payments from church members to the minister also “suggests that the transfers did not emanate from a detached and disinterested generosity but, instead, were designed to compensate for service as a minister”.
The same type of ruling was upheld in Goodwin v. United States, 67 F.3d 149 (8th Cir. 1995). The court held that the gifts to the pastor and his wife were taxable income based on evaluating the donor’s intent. Although the gifts were anonymous and not coerced, payments were made on a regular basis; were systematically organized and collected by church personnel; were substantial compared to pastor’s salary; and were made to retain the pastor’s services.
So are love offerings, collected regularly and systematically by the church and paid to the pastor, taxable compensation?
YES.
These payments should be included in the pastor’s W-2 and considered as part of the minister’s annual compensation.
IRC Section 102 stipulates that “gross income does not include the value of property acquired by gift, bequest, devise, or inheritance”. An employee who receives this type of gift, however, shall not exclude from gross income any amount transferred by or for an employer to, or for the benefit of, an employee.
So what exactly is a gift?
Over the past 47 years, several cases have highlighted similar scenarios.
In the Commissioner v. Duberstein, 363 U.S. 278, 285 (1960) case, the courts concluded that whether money or property transferred by an employer to an employee is an excludable gift is based on the reason for the employer’s action. If the employer’s reason for giving is based on a detached or disinterested generosity, affection, respect, admiration, charity or like impulses, the transaction is a gift and excludible from compensation.
However in Borgadus v. Commissioner, 302 U.S. 34, 45 (1936) if the gifts are made or intended to be made for any services rendered or to be rendered, then the gifts would be taxable.
So a donor can give based on a detached or disinterested generosity and it cannot be perceived to be based on services rendered or to be rendered. These gifts are not taxable tothe pastor and the donor does not receive a charitable deduction for income tax purposes.
Do you have to pay taxes on a Kvittal.
just how did that CPA get all that research in 20 minutes ? there are some intelligent people on this blog… V’Anochi Lo Yodaati…
Happy Purim !
This is Purim Torah – right?
That’s wierd… I was under the impression that everyone gave all that junk they get in mishloach manos to poor people..thereby giving much more than maaser… What else do you people do with that stuff???