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Pastor Housing Allowance Calculator

Under section 107 of the Internal Revenue Code, the excludable housing allowance is the least of three numbers: the amount the church designated in advance, the amount actually spent on housing, and the fair rental value of the home (furnished, plus utilities). This calculator runs that comparison. The IRS explains the rule at Topic 417 and in Publication 517.

1. Amount officially designated in advance for the yearFrom the board resolution adopted before the compensation was paid.2. Actual housing expenses for the yearRent or mortgage, utilities, insurance, repairs, furnishings, and similar costs of providing the home.3. Fair rental value of the home, furnished, plus utilitiesWhat the home would rent for on the local market, furnished, with utilities added.

This is an educational estimate of how the least-of-three comparison works, not tax advice. Amounts, categories, and a minister's individual situation vary; confirm your figures with IRS Publication 517 and a tax professional who works with clergy.

The designation has to happen in advance

The Church Formation Kit includes the housing allowance designation resolution, the estimate worksheet, and the whole treasurer system around it. $249, one time.

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Pastor Housing Allowance Calculator

The designation has to happen in advance

Occasional notes on forming and running a church