by delsa
(OH)
how to handle: pastor housing expense is paid for him by the church, instead of him receiving a housing allowance?
1Comments
Your church is creating taxable income for the pastor
BBill OConnell
Your church is likely creating taxable income for the pastor. Unnecessarily.
Your question does not have sufficient detail to provide a precise answer. However, this appears to be a case where the church is paying personal expenses on behalf of the pastor. This is a condition that creates taxable income AND income that is subject to the Self Employment tax.
This is the worst of all possible tax conditions. I suggest you consult with a qualified CPA who is familiar with clergy compensation and taxation.
My firm may be found at www.wisdomoverwealth.com.
Your question does not have sufficient detail to provide a precise answer. However, this appears to be a case where the church is paying personal expenses on behalf of the pastor. This is a condition that creates taxable income AND income that is subject to the Self Employment tax.
This is the worst of all possible tax conditions. I suggest you consult with a qualified CPA who is familiar with clergy compensation and taxation.
My firm may be found at www.wisdomoverwealth.com.