Inquiring minds want to know if Hargraves homes are or have been considered "parsonage"?
I'm not a tax attorney for wealthy preachers- so here are the basics that the IRS says about pastors homes and income tax.
Ministers' Compensation & Housing
I'm a minister and receive a salary plus a housing allowance. Is the housing allowance considered income and where do I report it?
A minister's housing allowance (sometimes called a parsonage allowance or a rental allowance) is excludable from gross income for income tax purposes but not for self-employment tax purposes.
If you receive as part of your salary (for services as a minister) an amount officially designated (in advance of payment) as a housing allowance, and the amount isn’t more than reasonable pay for your services, you can exclude from gross income 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.).
Is Church Parsonage Tax Deductible? ( I wonder how many parsonages hargraves claims and what is reasonable?)
Parsonage Allowance - Investopedia
] › Personal Finance › Taxes › Income Tax
Jun 11, 2018 - Although parsonage allowance is deducted for federal income tax purposes, it is not deducted for self-employment tax purposes. ... Note that although someone in a church may be referred to as a minister, the Internal Revenue Service (IRS) may not regard that individual as a minister for tax purposes.
Edited 1 time(s). Last edit at 06/19/2019 02:24AM by NancyB.