We have a church owned mission house.
At this time, we have a previous IMB missionary living in the house.
He has joined our staff for now and has been given permission by the church to live in the church owned fully furnished house with utilities paid by the church for at least 2 years.
I'm not sure how to account for a housing allowance for him. He currently gets paid $55000/year with nothing reported as housing allowance.
Wasn't sure how to set his salary up correctly.
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Figuring the Fair Rental Value (FRV) plus the Cost of Utilities for a Parsonage
VVickey
It is taxable on a SE tax level and some churches will help figure the fair rental value (FRV) of the parsonage and report it and the cost of utilities in Box 14 of the minister's W-2.
But ministers are ultimately responsible to figure and report that on their SCH SE on their personal income tax return.
Here is an article that helps with that figure: https://www.freechurchaccounting.com/fair-rental-value.html
But ministers are ultimately responsible to figure and report that on their SCH SE on their personal income tax return.
Here is an article that helps with that figure: https://www.freechurchaccounting.com/fair-rental-value.html