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Pastor's use of Church owned Parsonage AND Housing Allowance for Primary Residence

Our new pastor lives in a different city from where our church is located and drives here for the weekend and stays the weekend in our church-owned parsonage.

The pastor has a properly designated housing allowance from compensation we are paying them for costs of their primary residence in the other city.

It is our understanding that the parsonage in our city cannot be designated as a tax-free parsonage allowance in addition to the Pastor's primary residence as a Pastor can only have a housing allowance on one house, their primary residence.

How would we treat the value of the parsonage used by our Pastor over the weekends?

Is that taxable income to the Pastor even though it is used less than half of the week and is not the primary residence of the Pastor?

If we use the parsonage for occasional church events and small groups, does that render the use by our Pastor as tax-free given it is not exclusively used by the Pastor?

Comments for Pastor's use of Church owned Parsonage AND Housing Allowance for Primary Residence

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Dec 24, 2021
 Use of the Parsonage
by: Vickey

Well...you have stumped me =)

Like you ... I know a minister can only use a housing allowance on one "house".

I think the parsonage that he only stays in on the weekends would be considered more of a "travel" convenience ... like churches that have a place for evangelists when they visit.

BUT ... I am not a tax expert and I believe in this unusual case ... you should consult a knowledgable tax professional.

I can highly recommend Corey the Ministry CPA:
https://www.ministrycpa.org/

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