#Other words for housing allownace how to#
#Other words for housing allownace update#

вЂњMost bi-vocational (or poorly paid) clergy should not be receiving salary вЂ“ only housing allowance.

I received a lot of comments and questions over that article, but surprisingly many of them were not over the issues I covered in that article, but over a quote from a CPA, Bill OвЂ™Connell:

#Other words for housing allownace how to#

Last month, I wrote an article on payroll issues titled: How to Properly Manage Payroll. You can also request an appointmentonline.But first let me give you a little background of what promoted me to write about designating all salary as housing allowance even though it always stirs up so much debateвЂ¦ If you have questions, give us a call at (678) 825-1198 to schedule an appointment with a Financial Planning Advisor. Both are located on our website, and mirror the forms in the back of the PCA Call Package Guidelines вЂ“ just follow the links below. We also have a вЂHousing Allowance ResolutionвЂ™ drafted for you on our website it can be downloaded and attached to your Session minutes, or simply incorporated into the language of your minutes. For this reason, RBI has three online housing allowance worksheets available for you: one for a pastor who lives in a manse, one for a pastor who rents, and one for a pastor who owns a house. If your actual expenditures exceed this amount, youвЂ™ll only be able to exclude (deduct) the fair rental value amount.Дetermining the amount of your housing allowance can be challenging. But donвЂ™t forget the 3rd limitation above: fair rental value, furnished + utilities. So, request a designation high enough to cover both projected and unexpected expenses. Otherwise, if your actual expenses exceed your housing allowance designation, you will only be able to exclude the amount designated by the church. Since actual expenses may vary from year to year, and since the вЂactual expenditureвЂ™ calculation can include repairs, remodeling, furniture purchases, yard maintenance and improvements, as well as mortgage payments and utilities, you ought to request that your Session designate an amount generous enough to allow you to exclude all of these expenses.

the fair rental value of the home (furnished + utilities).

the amount of housing expenses you actually incur (with receipts, for one house only) or.

the amount of housing allowance designated by your church or.

According to the IRS, you are only able to deduct, or exclude from income, the lesser of:

ThatвЂ™s probably something that you are going to have to estimate for your Session. How much should be designated? Good question. Otherwise, if audited, the IRS could challenge your tax return. In other words, if you have not already done so, put вЂPastoral Housing Allowance ResolutionвЂ™ on the docket, and make certain that the minutes of your upcoming December Session meeting reflect an official housing allowance resolution for 2021. In fact, housing allowance should be designated for each minister in advance of the coming year, and it cannot be done retroactively.

#Other words for housing allownace update#

Pastors: It is time again to make sure you update your housing allowance resolution.ДЄccording to tax law, if you are planning to claim a housing allowance deduction (actually an вЂexclusionвЂ™) for the upcoming calendar year, your Session is required to designate the specific amount to be paid to you as housing allowance prior to the beginning of that calendar year.