jones
Member
Originally Posted by Pontius
this housing allowance is no different than any allowance than anyone else gets. so the claim about ministers getting to spend their tax free money on big screen tv is hogwash.
It's much different than an allowance that other people get, read below.
***2. Ministers do NOT pay income taxes on housing expenses --either your parsonage or if you own a house the money you spend on housing is income tax-free including the following: loan principle, interest, utilities, furniture, grass-cutting and all other housing “appurtenances” (generally whatever a priest would get for free as part of his housing). All these costs are tax-free—which seems unfair but “it’s the law.”
LIMITATION #2: It is also limited to the "Fair rental value of the house plus utilities." This is obvious—you can’t charge as housing more than the house is worth on the rental market (plus utilities). For instance if you own a house that is worth $100,000 usually it would rent for $1,000 a month meaning you would be limited to charging housing to $1,000 a month (plus your utilities) as your tax free housing allowance.
4. Ministers buying a house also get to take their housing interest as a regular deduction—so called “double dipping.” This sounds really unfair and wrong. It IS unfair (forget the notion that taxes are “fair” the laws are designed to benefit some people and not others). After you have excluded your housing expenses (including the interest on your loan) from income taxes “off the top” you can also take the interest expenses again as a normal deduction—just like you deduct your tithe and medical expenses. Amazing! Go look up the law—this is really true (and an unfair gift to ministers). This means that when you first buy a $100,000 house with maybe 5% down payment your monthly payments might be something like $800 and $700 is interest—totaling $8400 interest a year. You will first exempt this $8400 from your income taxes (along with the principle and other housing expenses) all “off the top” as housing THEN YOU GET TO TAKE THE $8400 AGAIN AS A DEDUCTION. Incredible! This unfair gift from the federal government to ministers ought to be changed some day, but for years it continues as a big break to ministers so, like salvation, it is offered to you freely and it is up to you to take it or not. All this means ministers have a BIG advantage in income taxes that the laity do not have.
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Their entire housing costs including loan principle, interest, utilities, furniture, grass-cutting and all other housing “appurtenances”, is given to them %100 percent tax free then they get to claim their housing expenses as a regular deduction such as everyone else would do, meaning not only do they get all this for free but they get more back on top of it. Quite a large difference from what everyone else gets. And this is only in relation to the housing exemptions.
this housing allowance is no different than any allowance than anyone else gets. so the claim about ministers getting to spend their tax free money on big screen tv is hogwash.
It's much different than an allowance that other people get, read below.
***2. Ministers do NOT pay income taxes on housing expenses --either your parsonage or if you own a house the money you spend on housing is income tax-free including the following: loan principle, interest, utilities, furniture, grass-cutting and all other housing “appurtenances” (generally whatever a priest would get for free as part of his housing). All these costs are tax-free—which seems unfair but “it’s the law.”
LIMITATION #2: It is also limited to the "Fair rental value of the house plus utilities." This is obvious—you can’t charge as housing more than the house is worth on the rental market (plus utilities). For instance if you own a house that is worth $100,000 usually it would rent for $1,000 a month meaning you would be limited to charging housing to $1,000 a month (plus your utilities) as your tax free housing allowance.
4. Ministers buying a house also get to take their housing interest as a regular deduction—so called “double dipping.” This sounds really unfair and wrong. It IS unfair (forget the notion that taxes are “fair” the laws are designed to benefit some people and not others). After you have excluded your housing expenses (including the interest on your loan) from income taxes “off the top” you can also take the interest expenses again as a normal deduction—just like you deduct your tithe and medical expenses. Amazing! Go look up the law—this is really true (and an unfair gift to ministers). This means that when you first buy a $100,000 house with maybe 5% down payment your monthly payments might be something like $800 and $700 is interest—totaling $8400 interest a year. You will first exempt this $8400 from your income taxes (along with the principle and other housing expenses) all “off the top” as housing THEN YOU GET TO TAKE THE $8400 AGAIN AS A DEDUCTION. Incredible! This unfair gift from the federal government to ministers ought to be changed some day, but for years it continues as a big break to ministers so, like salvation, it is offered to you freely and it is up to you to take it or not. All this means ministers have a BIG advantage in income taxes that the laity do not have.
******
Their entire housing costs including loan principle, interest, utilities, furniture, grass-cutting and all other housing “appurtenances”, is given to them %100 percent tax free then they get to claim their housing expenses as a regular deduction such as everyone else would do, meaning not only do they get all this for free but they get more back on top of it. Quite a large difference from what everyone else gets. And this is only in relation to the housing exemptions.