by Rick
(Madrid, NY)
A minister takes on a mortgage to purchase his own home. After several years, he has paid down or paid off the mortgage. He then refinances the home, securing a new mortgage.
Are the mortgage payments allowable as parsonage allowance?
3Comments
Minister Housing - Not Deductible
DDavid Rutledge EA
Anonymous answer is a good answer and on point. Most minister and tax professional do not dig into this issue.
Great Answer!
VVickey
Thank you, Anonymous! That was a perfect answer to Rick's question. Helpful answers and comments such as the one you posted to this question is very much appreciated!
housing allowance when refinancing home. . .
AAnonymous
If the refinancing using a mortgage is for the purpose of a home upgrade, addition, repairs, maintenance to the home the minister is living in, then YES it could be included in his housing allowance. If it is to purchase a second home, vacation home, motor home, car, boat or anything other that his physical home he lives in, then NO.
That would not be the intended use for IRC (Internal Revenue Code) 107. Keep in mind that I am not a lawyer however. So if you have legal questions, consult your own for that.
That would not be the intended use for IRC (Internal Revenue Code) 107. Keep in mind that I am not a lawyer however. So if you have legal questions, consult your own for that.