Pastor living in parsonage yet owns home in another state

by Ben

As a new pastor fresh out of seminary, this is all confusing to me. If I am living in the parsonage provided by the church and own a home in another state which I rent out, do I claim housing allowance for my rental home and also receive free housing via parsonage?

I would assume that is double dipping. The rental income would add to my salary come tax time. The parsonage should not show up as income on my W2 if I am understanding all of the things I am reading but the home that I own will since it would be rented. Thanks in advance for any advice offered.

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May 15, 2015
parsonage plus owning. . .
by: Lewis in NC

You seem to understand it. Only one housing allowance is permitted--the one on the house that permits you to do the ministry. The fair rental value of the parsonage, plus utilities and furnishings would not show up on your W-2 as long as the church has preapproved the correct sum for this in your church-approved housing allowance.

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