Can a church rent a property to use for its church parsonage? If so, can anyone live in the property as long as they're not paying rent to the church for living in the parsonage?
- Church rents house for destitute family as a temporary act of benevolence: non-taxable.
- Church rents house for non-ministerial employee near the church property as a condition of employment (example: custodial or security personnel): non-taxable
- Church rents house for minister. Tax consequences: income tax – none; self-employment tax: taxable. Although, the tax consequences would be identical if the church simply gave the minister a cash housing allowance and he paid the rent himself.
- Church rents house for employee, not a condition for employment – taxable just as if it had been paid directly to the employee in cash.