New church parsonage allowance
by Herb Martin
(Grand Rapids, MI)
The Treasury regulations 1.107-(1)(b) require that a housing allowance be established in the prior tax year.
For a new church (and a new minister hire) it would be impossible to have established the parsonage allowance for the minister's first year under a strict interpretation. Therefore either the parsonage allowance would have to wait until the second year or can this requirement be considered not applicable in the case of a new church or a new hire?