1gucci
1confidencegames
3paradise
299
2jesusandjohnwayne
2theleastofus
4albion
lifeinmiddlemarch2
Susie King Taylor2 360x1000
Margaret Fuller1 360x1000
Office of Chief Counsel 360x1000
Gilgamesh 360x1000
14albion
1lookingforthegoodwar
1paradide
3defense
Anthony McCann1 360x1000
Learned Hand 360x1000
Adam Gopnik 360x1000
1lauber
Anthony McCann2 360x1000
Maria Popova 360x1000
399
2transadentilist
storyparadox3
2defense
2paradise
6confidencegames
Storyparadox1
Margaret Fuller 360x1000
Brendan Beehan 360x1000
7albion
AlexRosenberg
Edmund Burke 360x1000
2lafayette
199
4confidencegames
1trap
Margaret Fuller5 360x1000
Richard Posner 360x1000
Spottswood William Robinson 360x1000
lifeinmiddlemarch1
Margaret Fuller3 360x1000
Thomas Piketty2 360x1000
LillianFaderman
Margaret Fuller 2 360x1000
1defense
2lookingforthegoodwar
Susie King Taylor 360x1000
5confidencegames
3confidencegames
8albion'
7confidencegames
Stormy Daniels 360x1000
Mark V Holmes 360x1000
Samuel Johnson 360x1000
Tad Friend 360x1000
6albion
5albion
1transcendentalist
storyparadox2
3albion
3theleastofus
2falsewitness
1falsewitness
Thomas Piketty3 360x1000
9albion
1theleasofus
Maurice B Foley 360x1000
Thomas Piketty1 360x1000
Ruth Bader Ginsburg 360x1000
James Gould Cozzens 360x1000
499
Betty Friedan 360x1000
1albion
12albion
2trap
1lafayette
George M Cohan and Lerarned Hand 360x1000
11632
1jesusandjohnwayne
11albion
1empireofpain
Mary Ann Evans 360x1000
Lafayette and Jefferson 360x1000
10abion
2confidencegames
2albion
13albion
Margaret Fuller2 360x1000
2gucci
George F Wil...360x1000
Margaret Fuller4 360x1000
1madoff
Originally Published on forbes.com on July 5th,2011
______________________________________
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.