(for ministers who own or rent their home)
The following resolution was duly adopted by the board of directors of First Church at a regularly scheduled meeting held on December 15, 2016, a quorum being present:
Whereas, ministers who own or rent their home do not pay federal income taxes on the amount of their compensation that their employing church designates in advance as a housing allowance, to the extent that the allowance represents compensation for ministerial services, is used to pay housing expenses, and does not exceed the fair rental value of the home (furnished, plus utilities); and
Whereas, Pastor John Smith is compensated by First Church exclusively for services as a minister of the gospel; and
Whereas, First Church does not provide Pastor John Smith with a parsonage; therefore, it is hereby
Resolved, that the total compensation paid to Pastor John Smith for calendar year 2017 shall be $50,000, of which $15,000 is hereby designated as a housing allowance; and it is further
Resolved, that the designation of $15,000 as a housing allowance shall apply to calendar year 2017 and all future years unless otherwise provided.
This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations."
Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.
If you found this article helpful, subscribe to ChurchLawAndTax.com for access to more articles like this one.