HA if the home is paid for or if the minister is paying cash as he builds?

My husband is a qualifying minister and we normally receive HA for our current home which has a mortgage. If we sell and use our equity to build and pay for a new home would we lose our HA since we would not have a mortgage or rent?

And my second question is during the years we are building a house could we deduct the cost of building(assuming we pay cash as we go)as HA for those years until the home was finished?

I realize the amount of HA would have to be set at the beginning of each year.

Comments for HA if the home is paid for or if the minister is paying cash as he builds?

Click here to add your own comments

Oct 05, 2015
Home is paid for. . .and H.Allowance?
by: Lewis in NC

If you sell your home and receive enough equity in the sold home to build another home, then there would be no expense to include in a possible housing allowance for a mortgage. But if you are a qualifying minister, there are ALWAYS QUALIFYING expenses to include in a housing allowance other than the house itself, example: all utilities, home owners insurance, cleaning supplies for the home, repairs, maintenance such as painting, plumbing, yard maintenance, landscaping, etc. In other words, there are the expenses for running the household. The only expense for running a household that cannot be included (that I can think of) is maid services--that is not allowed.

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!