Can Renovation Expenses be included as part of a Housing Allowance?

Can a Minister include renovation expenses as part of her Housing allowance? Should she use the higher estimate or the lower estimate of the planned renovation?

Can she use any of the housing related expenses paid by the boyfriend she lives with?

Comments for Can Renovation Expenses be included as part of a Housing Allowance?

Click here to add your own comments

May 16, 2019

Renovations & Housing Allowance
by: Victoria

This is a good resource for what can be considered as covered by the Housing Allowance

https://www.investopedia.com/terms/p/parsonageallowance.asp

Parsonage allowances only apply to a minister’s primary residence, and does not include commercial property or vacation homes. Housing expenses that are eligible to be excluded from income include:

mortgage payments (principal and interest);
rent payments;
property insurance;
property taxes;
payments for utilities and service delivery;
homeowners’ association dues
remodeling expenses

----------------

Repairs are a normal part of keeping up a house.
If the renovations are part of that there would not be a question that they are covered.

I would check with an accountant or contact the IRS if the renovation is something like adding a new horse stable not related to the typical household or ministry related just be safe, but typical renovations any average household might need shouldn't be an issue at all.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Housing Allowance.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

Contact Me!