Federal judge strikes down housing allowance for clergy

[Cow Poke]

Federal judge strikes down housing allowance for clergy



Remember, this is not a debate area - if you want to debate this, please start your own thread.

The fact is, however, that all across America, small Churches are able to pay their ministers a livable wage because they can take advantage of this tax law.

Just make it a matter of prayer, please, because this could seriously impact hundreds of thousands of ministers, particularly in small churches, or those serving in bi-vocational roles.

[Sparko]

Can the churches just actually pay the mortgage instead of giving an allowance?

Also, I think that if they are afraid of people misusing this (like maybe preachers like Osteen buying tax free mansions) then they could set a reasonable limit on the allowance amount.

[Cow Poke]

Can the churches just actually pay the mortgage instead of giving an allowance?

That would be "income", taxable. Anything that regularly benefits an 'employee' financially like that is "income".

Also, I think that if they are afraid of people misusing this (like maybe preachers like Osteen buying tax free mansions) then they could set a reasonable limit on the allowance amount.

There actually is a guideline...

the lesser of the following amounts:

the amount officially designated (in advance of payment) as a housing allowance;
the amount actually used to provide or rent a home; or
the fair market rental value of the home (including furnishings, utilities, garage, etc.).

[TheWall]

Lots of churches I have seen where I live are big is but get buy on the donations given on Sunday. Mr Holdings non profit gets buyou on donations and hearthstone subscriptions. I hope this won't make things worse for people and if possible it may be undone.

[Sparko]

That would be "income", taxable. Anything that regularly benefits an 'employee' financially like that is "income".



There actually is a guideline...

the lesser of the following amounts:

the amount officially designated (in advance of payment) as a housing allowance;
the amount actually used to provide or rent a home; or
the fair market rental value of the home (including furnishings, utilities, garage, etc.).

seems wacky. They can actually give you money as an allowance and it is not taxed, but if they just pay the mortgage, it counts as income?