Jump directly to the Content

Taxability of Employer-Provided Food and Lodging

The IRS recently addressed this matter.

• The IRS addressed the question of the taxability of food and lodging provided (on a cost-free basis) to clergy and lay workers who are required to reside on a church's premises to fulfill their duties. Many churches have employees (both clergy and non-clergy) who live in church-owned housing. Of course, federal law permits clergy to exclude the annual rental value of a church-provided parsonage from their gross income for federal income tax purposes (it is taxable for self-employment tax purposes). But what about non-minister church employees who live in church-owned housing? Is the annual rental value of such housing reportable as taxable income for income tax and social security tax purposes? And what about food provided on a church's premises to both clergy and non-clergy employees? Must it be valued and reported as taxable income? These are significant questions. The recent case ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • September 1, 1992

Related ResourcesVisit Store

20 Finance Questions Churches Ask
20 Finance Questions Churches Ask
Richard Hammar answers relevant tax and finance questions for church leaders.
Nonprofit Finance
Nonprofit Finance
The Field Guide for Financial Operations of Ministries, Schools, and Other Public Charities
CARES Act and CAA Table
CARES Act and CAA Table
A Side-By-Side Look at COVID-19 Economic Relief
Church Compensation - Second Edition
Church Compensation - Second Edition
From Strategic Plan to Compliance