Under IRC Section 107, the term “housing expense” for ministers includes costs associated with providing and maintaining a home. Unfortunately, the IRS has not published a defined list.
Here are some detailed examples of specific expenses that can be considered for maintaining a home under IRC Section 107:
Rent or Mortgage
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Rent Payments: Monthly payments made to a landlord for renting a residence.
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Mortgage Payments: Monthly payments towards a mortgage, including both principal and interest.
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Utilities
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Electricity Bill: Monthly charges for electricity usage.
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Water Bill: Payments for water services provided to the home.
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Gas Bill: Costs for natural gas used for heating and cooking.
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Internet Service: Expenses for internet connectivity in the home.
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Trash Collection: Fees for garbage and recycling services.
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Repairs and Maintenance
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Plumbing Repairs: Costs to fix leaks, clogs, or other plumbing issues.
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HVAC Maintenance: Fees for servicing heating, ventilation, and air conditioning systems.
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Roof Repairs: Expenses for fixing roof leaks or replacing damaged shingles.
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Lawn Care: Payments for lawn mowing, gardening, and landscaping services.
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Pest Control: Costs for extermination services to address pest infestations.
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Furnishing and Appliances
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Furniture: Purchases of essential furniture like beds, sofas, dining tables, etc.
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Kitchen Appliances: Costs for refrigerators, ovens, microwaves, and dishwashers.
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Laundry Appliances: Expenses for washers and dryers.
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Heating and Cooling Units: Costs for portable heaters, fans, or air conditioners.
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Property Taxes and Insurance
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Property Taxes: Annual taxes paid on the home’s value.
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Homeowners Insurance: Premiums for insurance policies that cover the home.
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Flood Insurance: Additional insurance for homes in flood-prone areas.
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Renters Insurance: Insurance costs for protecting personal belongings in a rented home.
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Security Systems
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Alarm Systems: Installation and monitoring fees for home security alarms.
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Surveillance Cameras: Costs for purchasing and installing security cameras.
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Security Service: Monthly fees for professional security monitoring services.
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Miscellaneous
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- Painting and Decorating: Costs for necessary painting or wallpapering to maintain the home’s condition.
- Supplies: To determine if a given expense qualifies as being used to maintain a home, consider the following criteria:
Necessity: The expense should be necessary for the home’s upkeep, safety, and habitability. For example, paying for repairs to a leaking roof would qualify, but buying decorative items might not.
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Clergy Financial Resources
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101Â
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