Housing allowance for bi-vocational minister

by Kevin
(Jacksonville, NC)

Our assistant pastor receives is a bi-vocational licensed minister.

His monthly compensation is $1,000 per month ($500 designated as salary, and $500 designated as a housing allowance).

We would like the full amount to be designated as housing allowance, and he meets the criteria. I was told by the CPA that only half of the income may be designated as housing allowance.

What is the reference from the IRS? Topic 417 doesn't cover it. I don't see any other reference that states only half of the income be paid as housing allowance.


Thank you