Home Equity in housing allowance

Is a home equity payment eligible to be included in the housing allowance?

Comments for Home Equity in housing allowance

Click here to add your own comments

Jan 07, 2014
Home Equity Loan Payments
by: Vickey

It would depend on what the home equity loan was used for. If it was used for personal items such as a car, medical expenses, education expenses, etc. then the IRS has ruled it is not permissible to use the second mortgage for qualifying housing allowance expenses. If it was used for home improvements or any other house related expense mentioned in this page: https://www.freechurchaccounting.com/housingallowanceexpenses.html then it would be allowable. See IRS Letter Ruling 9115051. Tax Court: Rasmussen v. Commissioners, T.C. Memo. 1994-311

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 Minister Employee.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.