Clergy May Soon Find Taxes Soaring As Result of an Under-the-Radar Ruling
…The first subsection, 107(1), allows a minister to exclude from taxable income the value of a living space that’s considered “part of his compensation,” while the second, 107(2), permits the exclusion of “the rental allowance paid to him” for a living space. This second subsection, wherein the employer provides the money rather than the space itself, is the one that Crabb found unconstitutional. For decades, both Catholic and Protestant clergy in…
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