Housing assistants??

Clergy Housing Allowance Limit?

  • I sit on the board of directors of my church. We have to set the 2010 clergy housing allowance this month. This is my first year on the board. Is the housing allowance supposed to reflect the actual housing costs for the pastor? I know as fact the following because he submitted it in writing: Mortgage payment - 0 (the house is paid for) Insurance and Property Taxes $8,000 Utilities $2,400 Maintenance & Repairs $1,200 So the Housing Allowance should not exceed $11,600 but we could round it up to $12,000 just in case there is an unanticipated repair or spike in energy costs. He wants a housing allowance of $25,000. I don't think we can approve one that high because his actual housing costs are far less. Also, his wife works a wage paying job so doesn't some of her income get allocated to housing costs? I want to avoid tax problems with the IRS on this. I don't care what was done in the past. I want what is done now to be right.

  • Answer:

    You should base it on what the amount was in the past. An increase may be warranted. However, any increase needs to be explained and what it will go towards. The Clergy person does not get a free allowance to add a spa or other nicety without the board's approval. As with IRS concerns, keep it all documented.

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what has the board determined in past years? with the annual increase in everything, utilities, taxes etc the board probably should increase the amount of past years by a small % the situation with the minister's wife should have no bearing on it consider what your board would offer if this man was not in the position, say someone who had no home of his own, and you as a church had to provide one his request should also not have any bearing on it, especially since it apparently is paid for

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