A pastor decided to upgrade his kitchen but did not modify his housing allowance for that year. Can he use those expenses in figuring the upcoming year's housing allowance?
Since the upgrades were made in the current year, the expenses will be included in the current year's housing allowance calculation, and cannot be taken out of the next year's housing allowance. When determining the housing allowance for any given year, it is important that the pastor consider any new additions. A quote from the link provided below helps explain this situation:
Since there is generally no consequence for overestimating a housing allowance allocation of one's ministry compensation other than being required to report the excess as taxable compensation, it is usually best to anticipate potential projects such as the one cited in the Question.