Housing / Manse / Parsonage Designation
Under Treasury Regulation § 1.107-1(b), a housing allowance must be formally designated by official action of the employing church or other qualified organization before any payment is made.
Although the Regulation does not explicitly require the designation to be in writing, best practice is to ensure it is documented in advance through official action. Documentation may take various forms, including a board resolution, a budget line item, corporate minutes, or an employment contract.
Need Additional Guidance?
Clergy Financial Resources provides Pro Advisor support for housing allowance and other tax-related questions. This support service is offered at a flat rate of $125 per 30‑minute session.
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
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