The Internal Revenue Code provides churches the ability to designate, and for ministers to receive, a housing allowance. Housing allowances are also known as parsonage allowances or rental allowances. Although these allowances provide great tax benefits, many churches and ministers fail to take advantage of them. Here are some things churches should know about these allowances:
(a) the amount designated as the housing allowance
(b) the amount of actual housing expenses, or
(c) the fair rental value of the property (furnished, plus utilities).
Housing allowances can be great tax saving tools for ministers. While there is no cost to a church, such allowances can save ministers a significant amount each year. Deciding to set up a housing allowance may raise many additional legal issues and questions. If your church is considering setting up a housing allowance for a minister, please contact the attorneys of Dalton & Tomich, PLC.
The attorneys of Dalton & Tomich, PLC have the experience and the knowledge to work with you to develop a legal solution that helps accomplish your goals. Our collaborative approach has helped leaders like you grow businesses and banks, develop and expand churches, and build nonprofit organizations nationwide.
In my role as Administrative Bishop for the Church of God, quite often we are faced with issues that involve local governments and municipalities. Many of these issues that arise in dealing with entities are land use related. I have found Dalton & Tomich’s experience and expertise in this area to be a valuable resource and asset in every situation.
Never one time during a year-long litigation process did Dalton & Tomich demonstrate anything other than Christ-like professionalism. They managed the legal details, while we continued to do church. How they managed themselves, managed our case, and represented our church set the table for me and our church to be where we are today.
Dalton & Tomich’s expertise and experience helped us through a very difficult legal journey, ultimately achieving a favorable outcome. Their personal interest in helping us went “above and beyond” just the call of duty.