by Tim
(RI)
I am an unpaid pastor of a church in RI, but I do live in the church parsonage, rent free and bill free. Must I claim this on my taxes, and also am I allowed certain deductions, even though I am unpaid?
1Comments
Tax on Parsonage
VVickey
You are not subject to income taxes on the use of the parsonage; however, the fair rental value of the parsonage plus utilities is added when figuring your self-employment tax.
You are responsible for determining the fair rental value of the parsonage. A simple way would be to determine what comparable houses rent for in the area. A realtor can sometimes provide this information.
You would report this amount on a Schedule SE when preparing your personal tax return.
Since there is no income and no income tax due...I do not believe there are any deductions you could take.
You are responsible for determining the fair rental value of the parsonage. A simple way would be to determine what comparable houses rent for in the area. A realtor can sometimes provide this information.
You would report this amount on a Schedule SE when preparing your personal tax return.
Since there is no income and no income tax due...I do not believe there are any deductions you could take.