Expense of house

Marcia

Junior Member

Join Date: Dec 2019

Posts: 13
#1

Expense of house

05-28-2021, 08:15 AM

I have a client who is a pastor and receives a parsonage allowance. His expenses are less than his allowance, therefore part of it is taxable. He is unable to itemize.
Question: His wife is self employed, files Sch C and used one room of their house for her business because of Covid 19. Is she able to claim expense of house since her husband receives a parsonage allowance? Thank yo.M
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Anarchrist

Senior Member

Join Date: Oct 2006

Posts: 340
#2

06-03-2021, 12:51 PM

Possibly for mortgage interest & r.e. taxes, probably not for other items.

Look at the Ministers Audit Techniques Guide and ?265:

404 | Internal Revenue Service

https://www.irs.gov/pub/irs-utl/ministers.pdf

404

26 U.S. Code � 265 - Expenses and interest relating to tax-exempt income

https://www.law.cornell.edu/uscode/text/26/265

"Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen
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