Housing allowance while living over seas temporarily

by Tim Galloway
(Marietta, GA)

Hello,
I am licensed and ordained and received housing allowance for the past 6 years. in 2009, my family moved to Chile for the months Sept. to Dec. for ministry work. I maintained my house that I own in the USA and rented a flat while in Chile. So, in effect I had two houses to maintain. Also, we had a man house-sit for us in our home in the USA and he paid for the utilities. some months he gave more which we used to help pay against our mortgage payment. but we had no profit, it just help cover some of the expense.

So, is my thinking right: for those 4 months we actually lived in Chile, Could I also include the expense of maintaining our home in the USA as part of my housing allowance? I reduced actual expenses by subtracting out any money which our house sitter gave us

My dad thinks we should make the house in the USA a rental property for those 4 months and report it as a loss and simply track housing allowance for any expense we incurred while in the actual places we lived.

Thank you!!!!!!!

Tim Galloway
Grace Ministries International

Answer

I would consult a CPA or tax attorney. I believe you have to live and maintain a home in the US to qualify for the housing allowance. If so, you would not be able to claim your housing expenses for those four months.

I think it would be worth the money it would cost to consult an expert in this situation.

Or....depending on how quick you needed an answer...you could try asking a expert on the churchsafety.com site.

Hope this helps,



Church Accounting Package

www.freechurchaccounting.com

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!