Welcome to Solomon!

Enter the Access Code below

Access code is invalid

Solomon Logo

Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

Reliant allows international workers to raise money for purchasing a vehicle in their ministry location. Since life and ministry overlap on the field, it can seem like you are purchasing a vehicle "for ministry", but the IRS does not see it that way. Before purchasing your vehicle, please make sure you understand the following considerations.

UI Steps
sizesmall
UI Step

In most circumstances, the vehicle is considered the personal property of the Reliant employee. This means that:

  • The vehicle expense cannot be reimbursed as a ministry expense. You must request an International Bonus, which is considered taxable income for you.
  • You have full freedom to sell the vehicle and keep the proceeds
UI Step

Most likely, you are using the vehicle for a lot of ministry activity. The guidelines for using MTD funds for vehicle expenses are as follows:

  • You may reimburse mileage according to the Reimbursement and Expense Recovery Bonus Standard when traveling more than 50 miles from home.
  • You may add local mileage to your monthly salary as part of your Ministry Expense Bonus.
  • You may submit an International Bonus if you have unexpected expenses like local taxes or major repairs.
  • If you use your vehicle as part of your work with a local organization, you can consider talking to them about any mileage reimbursement that they may be able to offer.
UI Step

In certain circumstances, Reliant can approve a grant for a vehicle, in which case it will not be taxable to the Reliant employee. To qualify, the following conditions must be met:

  • The grant must be sent directly to the local organization (501c3/NGO status is required).
  • The vehicle must be registered under the local organization, not the Reliant employee.
  • The local organization maintains ownership over the vehicle and has the freedom to sell the vehicle and keep the proceeds.
  • The Reliant worker must document that they have informed donors that they are raising funds specifically for purchasing a vehicle for the local organization (i.e. in a support newsletter).


...