Minister's housing allowance

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  • veritas
    Senior Member
    • Dec 2005
    • 3290

    #1

    Minister's housing allowance

    Does telephone expense qualify as a utility expense?
  • Bird Legs
    Senior Member
    • Jun 2005
    • 990

    #2
    Clergy Housing Expense

    The following is from The Church & Clergy Tax Guide by by Richard R Hammar, 2003 edition.
    Utilities: electricity, gas, water, trash pickup, local telephone charges.
    It also includes home owners assoc. dues.

    Comment

    • veritas
      Senior Member
      • Dec 2005
      • 3290

      #3
      Thank you Bird!

      By the way did you know that the last legislation about housing allowance came about due to Rick Warren being audited in the 90s?

      Comment

      • Bird Legs
        Senior Member
        • Jun 2005
        • 990

        #4
        Minister audit

        Realized that it did come about back in the 90s, but did not know the reason.
        Thanks for that bit of info.

        Comment

        • veritas
          Senior Member
          • Dec 2005
          • 3290

          #5
          From an article by Frank Sommerville JD CPA

          Rev. Rick Warren challenges the IRS
          Like Rev. Marine had in 1967, in the mid-1990s Rev. Rick Warren, pastor of Saddleback Community Church in Lake Forest, CA, received 100 percent of his compensation from his church as housing allowance because he had a sizeable additional income from his book royalties. Rev. Warren then spent that allowance on qualified housing expenses. Rev. Warren and the IRS both agreed that the amount designated and the amount spent exceeded the fair rental value of the house and its furnishings. They asked the Tax Court to decide whether the amount of the housing allowance excluded from income tax was limited to the fair rental value amount as suggested by Revenue Ruling 71-280.

          Of course Pastor Warren said he fought the IRS for the other pastors who could not afford it.

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          • Bird Legs
            Senior Member
            • Jun 2005
            • 990

            #6
            A very noble deed

            indeed. Very interestng. Must have been a very intelligent minister, or had a
            very intelligent tax attorney.

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            • Unregistered

              #7
              "A knight without armor in a savage land
              His fast gun hire, heeds the calling wind
              A soldier of fortune, is a man called ??????? "

              Paladin

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