Storyparadox1
storyparadox3
Thomas Piketty2 360x1000
Spottswood William Robinson 360x1000
2paradise
3paradise
4albion
11632
1falsewitness
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1jesusandjohnwayne
10abion
Anthony McCann2 360x1000
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Office of Chief Counsel 360x1000
1albion
2transadentilist
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2albion
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12albion
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499
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1transcendentalist
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5albion
George M Cohan and Lerarned Hand 360x1000
1lauber
Margaret Fuller5 360x1000
1lookingforthegoodwar
George F Wil...360x1000
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storyparadox2
1confidencegames
13albion
3confidencegames
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199
AlexRosenberg
399
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1trap
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7confidencegames
299
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1madoff
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6confidencegames
3albion
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11albion
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2lafayette
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8albion'
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Adam Gopnik 360x1000
7albion
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.