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

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Jun 06, 2023
100% Housing Allowance
by: Vickey

Ask your CPA to provide you with the IRS regulations that state that. As far as I know ...there are none.

$1000 a month is not "excessive" and since he has other income to "cover" non-housing expenses... approving a 100% of his compensation as a housing allowance sounds "reasonable "to me.

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