Housing / Manse / Parsonage Designation
The Regulations require that the housing allowance be designated pursuant to official action taken in advance of such payment by the employing church or other qualified organization. Treas. Reg. § 1.107-1(b).
While this Regulation does not require the designation to be in writing, as a practical matter the designation should always be documented in advance of payment by official action of the qualified organization. This may take different forms, such as by resolution, budget line item, corporate minutes, employment contract, etc.
Do you still have questions? Clergy Financial Resources also offers Pro Advisor support for your housing and other tax questions. This support service is available at a flat rate of $95.00 for each 30-minutes 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.
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