Section 107 Of The Internal Revenue Code

The discrimination in existing law by providing that the present exclusion is to apply to rental allowances paid to ministers to the extent used by them to rent or provide a home.

Section 107 of the internal revenue code. Those provisions provide that a minister of the gospel may exclude a housing allowance from his or her gross income. Applicable law section 107 provides that in the case of a minister of the gospel gross income does not include 1 the rental value of a home furnished to him as part of his compensation or 2 the rental allowance paid to him as part of his compensation to the extent used by him to rent or provide a home. Except as provided in paragraph 2 notwithstanding any prior regulation revenue ruling or other guidance issued by the internal revenue service no person shall be subject to the limitations added to section 107 of such code by this act for any taxable year beginning before january 1 2002.

The discrimination in existing law by providing that the present exclusion is to apply to rental allowances paid to ministers to the extent used by them to rent or provide a home. 107 by inserting and to the extent such allowance does not exceed the fair rental value of the home including furnishings and appurtenances such as a garage plus the cost of utilities before the period at the end of paragraph 2. This worksheet is designed to help a retired clergyperson determine the amount that he or she may exclude from gross income pursuant to the provisions of section 107 of the internal revenue code code.

From income tax under irc 107. 2 returns positions the amendment made by this section also shall apply to any taxable year beginning before january 1 2002 for which the taxpayer a on a return filed before april 17 2002 limited the exclusion under section 107 of the internal revenue code of 1986 as provided in such amendment or b filed a return after april 16 2002. The allowable allowance is subject to self employment tax under seca and irc 1402 a 8.

Rental value of parsonages on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. For more detailed codes research information including annotations and citations please visit westlaw. The allowable allowance is computed subject to limitations imposed by law as to the amount and the required designation by the employing.