Parsonage allowance and owner occupied rental home

The Minister lives in a 2 family home and receives rental income in this 2 family home. Should his FMV of actual expenses be calculated and reduced by the 50% of his usage that he paid for the home's expenses of mtge payments, insurance, utilities and repairs and offset his HA??

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Mar 19, 2016
Parsonage allowance vs. owner occupied rental home
by: Lewis in NC

The amount of housing allowance this pastor owner of this duplex will end up being able to reduce his/her income by is the lowest amount of the following (1) the actual church approved housing allowance amount, (2) the actual expenses for overall housing for the minister, related to his/her apartment in this duplex, or (3) the FMV (rental value) of his apartment in this duplex furnished. If he/she owns this duplex and rents out part of it, then a 1040, Sch. E will have to be filled out in preparing his/her taxes.

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