by Sam
(Iowa Park, TX)
Our Pastor of 10 years wants to purchase the parsonage he is living in. He is planning on retirement and wants to build up equity in a home. He would like for the church to sell him the home at a reduced price to compensate him for loss of equity over the past 10 years. Then the church would establish a housing allowance after purchasing the parsonage. Any insight would be appreciated
1Comments
Purchasing the parsonage
MMarcusNTexas
If a decision to sell to the pastor is made, then the sales price should be relatively close to the market value of the property. If the sales price is considerably less than the market value, then it seems like there could be a potential "taxable gift" issue on the difference between the market value and the sales price. The housing allowance that the pastor continues to receive can be used to make the mortgage payments, so that would not be an issue. I suggest consulting a qualified tax attorney.