2lafayette
2transadentilist
11632
AlexRosenberg
2confidencegames
5confidencegames
1jesusandjohnwayne
Anthony McCann2 360x1000
Margaret Fuller 360x1000
Samuel Johnson 360x1000
3albion
7confidencegames
1lauber
Thomas Piketty2 360x1000
Spottswood William Robinson 360x1000
Thomas Piketty3 360x1000
George M Cohan and Lerarned Hand 360x1000
Thomas Piketty1 360x1000
1theleasofus
1trap
Gilgamesh 360x1000
1albion
1lafayette
1gucci
LillianFaderman
Margaret Fuller2 360x1000
2jesusandjohnwayne
7albion
Margaret Fuller3 360x1000
3confidencegames
Margaret Fuller5 360x1000
storyparadox2
6confidencegames
2gucci
1empireofpain
499
Edmund Burke 360x1000
1defense
2defense
storyparadox3
Lafayette and Jefferson 360x1000
Stormy Daniels 360x1000
Susie King Taylor2 360x1000
Office of Chief Counsel 360x1000
2falsewitness
4albion
13albion
11albion
Storyparadox1
Adam Gopnik 360x1000
Tad Friend 360x1000
9albion
George F Wil...360x1000
Ruth Bader Ginsburg 360x1000
1confidencegames
299
Margaret Fuller 2 360x1000
Maurice B Foley 360x1000
Susie King Taylor 360x1000
2albion
Anthony McCann1 360x1000
3defense
1paradide
8albion'
Mary Ann Evans 360x1000
lifeinmiddlemarch1
1madoff
2lookingforthegoodwar
4confidencegames
199
1lookingforthegoodwar
Margaret Fuller1 360x1000
5albion
12albion
James Gould Cozzens 360x1000
lifeinmiddlemarch2
14albion
Maria Popova 360x1000
Margaret Fuller4 360x1000
2theleastofus
6albion
1transcendentalist
3theleastofus
3paradise
Brendan Beehan 360x1000
Richard Posner 360x1000
2trap
Mark V Holmes 360x1000
10abion
Learned Hand 360x1000
Betty Friedan 360x1000
399
2paradise
1falsewitness
Originally Published on forbes.com on July 5th,2011
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Most of my posts are based on my own review of original source material, rather than what I read in other blogs.  Since I often spend some time on the developments before I post, I’m usually not the guy to go to for breaking news.  I make exceptions, though, when, well, when I feel like making exceptions.  In this case it is because the parsonage exclusion is something I have been following pretty closely.  My most comprehensive post on the subject was titled “Work, Fight or Pray – Vestige of the Medieval in Our Tax Code” (Pretty catchy eh ?).  So I feel compelled to report this post by Reverend William Thornton.  He pointed me to this story, which indicates that a suit by The Freedom From Religion Foundation has been dropped.  They were maintaining that the parsonage exclusion violates the Establishment Clause of the First Amendment. It appears that the abandonment of the suit is based on the Supreme Court decision on the Arizona tuition tax credit, that holds that for purposes of standing to sue under the Establishment Clause, a tax credit is not equivalent to an expenditure.
The “parsonage exclusion” (Section 107 of the Internal Revenue Code) is one of the shorter sections :
In the case of a minister of the gospel, gross income does not include—
(1) the rental value of a home furnished to him as part of his compensation; or
(2) the rental allowance paid to him as part of his compensation, to the extent used by him to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities
You would infer correctly from the non-inclusive language, that the section goes back to the early days of the Code.
The exclusion of a cash “rental allowance” has been an area of abuse.  I believe the IRS will be appealing the decision that allowed Phil Driscoll to exclude $195,000 in parsonage payments from his music ministry that were attributable to his second home.