Parsonage allowance when a minister refinances his home

by Rick
(Madrid, NY)

A minister takes on a mortgage to purchase his own home. After several years, he has paid down or paid off the mortgage. He then refinances the home, securing a new mortgage.

Are the mortgage payments allowable as parsonage allowance?

Comments for Parsonage allowance when a minister refinances his home

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Minister Housing - Not Deductible
by: David Rutledge EA

Anonymous answer is a good answer and on point. Most minister and tax professional do not dig into this issue.
Great Answer!
by: Vickey

Thank you, Anonymous! That was a perfect answer to Rick's question. Helpful answers and comments such as the one you posted to this question is very much appreciated!
housing allowance when refinancing home. . .
by: Anonymous

If the refinancing using a mortgage is for the purpose of a home upgrade, addition, repairs, maintenance to the home the minister is living in, then YES it could be included in his housing allowance. If it is to purchase a second home, vacation home, motor home, car, boat or anything other that his physical home he lives in, then NO.
That would not be the intended use for IRC (Internal Revenue Code) 107. Keep in mind that I am not a lawyer however. So if you have legal questions, consult your own for that.

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