Self-employed pastor per guidelines with 100% housing allowance
My question: Schedule C Expenses must be allocated against tax free income such as housing allowance.
Assume the pastor falls within guidelines as self-employed and has 100% housing allowance.
If the actual expenses that would go on Schedule C are greater than the allowance, how is that handled?
Example figures: $10,000 tax free housing allowance as opposed to $13,000 Schedule expenses.