In order to have such status, the assets of the corporation cannot accrue to the personal benefit of an individual other than as reportable compensation. Another concern involves the sale or rental of the parsonage. This possible interpretation of the tax laws should not go unexplored before a final decision is made. The above lists are not intended to be exhaustive. Hopefully, they will stimulate thinking in this complex area.
Many statements are similar but have opposite impact when phrased from a different perspective.
Churches with strong financial resources may have no difficulty if they decide to sell their parsonage and provide a cash housing allowance. However, such a decision should be preceded by careful evaluation and in consultation with the church board, district board of church properties, district superintendent, pastor, and tax advisor. The church board which does not allow its minister to purchase his own home, but does provide an adequate parsonage and an allowance for parsonage furniture, etc., is still without an answer for their concern for the pastor's future retirement need. This question can be answered much more easily. The church can contribute and tax-shelter this compensation.