If a minister rents his principal residence, but he performs services (mowing the lawn, repairing the roof, etc.) in lieu of rent, can he still qualify the rent amount for a housing allowance tax benefit?
Of course, bartering income is taxable. The Internal Revenue Code interprets that above situation as follows:
- tenant/minister receives taxable income for the fair market value of the services he provides, and
- tenant/minster pays landlord for renal of residence.