Deduct the rental value of a home?

by John C
(Peoria, IL)

I qualify for a pastoral housing allowance. If my house is paid for, is there anyway to still deduct the rental value of the home or am I limited to the actual expenses to care for my home?

Comments for Deduct the rental value of a home?

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Dec 13, 2016
Housing Allowance
by: Anonymous

Even if your house if paid off, you can still deduct a 'rental value'; however, you must save all your receipts for expenses incurred for ALL that has to do with your house.

Having said that, it still comes down to the actual costs incurred at the end of the year. If the actual costs are less than the 'estimated costs' then you will most likely end up having a balance/tax to pay when filing.

Dec 13, 2016
limitation on clergy housing allowance
by: Lewis in NC

Clergy are limited to the lower of the following three amounts when figuring the clergy housing allowance exclusion from actual taxable income.

1: the amount of the housing allowance designation by the church, (not designated by the church then no housing allowance can be excluded), or

2: the fair rental value of the minister's furnished house, plus utilities, or

3: the amount actually spent (that year) to buy, rent, furnish, improve and maintain the primary residence.

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