A common method for determining the fair rental value of clergy housing is using a fixed percentage, like 12%-15% of the current home value. However, this method may be inaccurate. The IRS and tax courts typically recommend using methods such as the comparable fair...
Housing Allowance
Can the board declare a housing allowance without a specific amount?
When your board declares your annual clergy housing allowance, they must declare a specific dollar amount or percent as the housing allowance. The designation must be made in advance of the payment. A general declaration that you have a housing allowance without...
Can a church board amend a minister’s housing allowance?
Question: Our minister would like to increase his housing allowance due to higher expenses than expected. Can our board amend it? Answer: Yes, your church can amend the housing allowance, but you must pay attention to the following rules: Proper authorization: The...