Tithing: Thinking At The Margins – Part II

This is Part II of the six-part series where we discuss gifts and inheritance. Please remember that my only goal is to help you think through your view of paying a full tithe.

Here are some scenarios with the questions that each raises.

You’re given a cash gift.

• Should you pay tithing?
• What if the gift is from someone who already paid tithing on it?
• What if the cash gift is in the form of paying down your debt (student, car, or home loans)?
• Is there a difference between being given the money (with the expectation that you’ll pay down the debt) and having the money paid directly to the creditor?
• If the money isn’t paid directly to the creditor, is there a difference between circumstances where the money was specifically ear-marked (or not) for the paying down of the debt?

You’re given a non-monetary gift.

• Should you pay tithing on the cash value of a non-monetary gift?
• And the gift giver lives far away and doesn’t want to pay to ship it. If they give you a check specifically for the the gift (e.g., a lawnmower), should you pay tithing on it?
• What if they’ve already paid tithing on the money?
• What if they send the money to the store and you pick up the lawnmower, so it’s essentially the same as if the person had lived closer and physically given you the gift?
• And you sell it for more than it was worth when you received it. Do you pay:
• Any tithing?
• Tithing on the profit (i.e., the money you earned in excess of the original value)?
• Tithing on the full amount?
• From work, or a non-monetary work-related benefit.
• Should you pay tithing on the cash value?
• What if you sell the gift and end up with cash?
• In the form of a reduced rate on a product or service. Maybe a family member is giving you a good deal on your rent. Do you owe tithing on the difference between what you’re paying and the market rate?

You’re given a gift card.

• Should you pay tithing?
• What if the gift is from someone who already paid tithing on it?

You’re given a gift in the form of service. The service rendered has a very quantifiable value on the market (i.e., people usually pay to have the service performed) such as work on your car or lawn.

• Should you pay tithing on the cash value of the service?
• Does your answer to the above question change if the service was paid for rather than rendered? (e.g., Someone knows you need work done on your car but isn’t handy under the hood)
• What if the service increases the value of the item upon which service was rendered? For example, you have a car worth $1,000 that needs some work. As a gift, your friend fixes it for you and it’s now worth $2,000.
• Do you only pay tithing on the increase?
• Do you only pay tithing if you sell it? If so, on the $1,000 or the $2,000?
• Do you only pay tithing on your profit? For example, if you paid $2,000 for the car originally, do you pay no tithing?

Does the relationship with the person matter? If you give the gift to your _________, does s/he need to pay tithing on it? (And is there a difference between monetary and non-monetary?)

• Spouse
• Child
• Parent
• Grandchild
• Grandparent
• Uncle or aunt
• Cousin
• Friend

You receive an inheritance in monetary and non-monetary forms.

• Do you pay any tithing?
• Do you pay tithing on the full cash value of the inheritance?
• Do you pay tithing only on the monetary portion?
• Would your answers to the above questions change if the person leaving the inheritance to you had already paid tithing?
• You’re the only heir and included is a house worth $200,000. The house was paid for with post-tithing money, but the purchase price was $100,000. Do you owe tithing:
• At all?
• On the full $200,000?
• On only the $100,000 because it’s the difference between what was paid for with post and pre-tithing money?

Does receiving something of value but paying less than the normal price constitute “increase”?

• If you receive a freebie, should you pay tithing on the cash value?
• What if you sell the freebie?
• If you buy something with a coupon, should you pay tithing on the money saved?
• What if you resell the item for a profit?

Continue on to read the other parts in the series:

• Part I — The reasons for the series.
• Part III — Business and employment.
• Part IV — Real estate, investments, retirement, and insurance.
• Part V — What I learned, heard, or identified in writing this series.
• Part VI — Conclusion of the series with a few final thoughts.