How to help Ministers pay for their homes tax free

Education & Training with Hallmark Accounting & Tax Solutions, LLC

I represent taxpayers in Elizabethtown and the rest of Kentucky who have found themselves in trouble with the IRS or State taxing authorities. Many clients that I work with are Clergy/Ministers and they have special tax issues that can make buying a home a little more detailed than the regular home buyer. 

Many ministers may find themselves being audited by the IRS or State DOR because a large percentage of tax preparers don't understand the special tax needs of ministers, especially how the Housing Allowance works. Real Estate Agents can be a huge help to these potential clients by understanding just how the Housing Allowance works and what is and is not allowed by the IRS for them to qualify for this special tax benefit.

Ministers are allowed to take the "least of three" rule. That is, they can take as Federal income tax-free a housing allowance that is the least of:

1. The Fair Rental value of the home + furnishings + utilities

2. The Actual Housing Allowance designated by their church

3. The Actual Housing Expenses incurred during the year

The minister should take this into consideration when buying a home as the Housing Allowance also has to be reasonable for the area/community they reside in addition to other considerations.

So, real estate professionals can be a great asset to any potential client who happens to be a qualifying minister when it comes to picking the right home.  Knowledge is power, and we as professionals need all the knowledge we can grasp because many times, our clients may not even be aware of the tax law and how it affects their particular situation. 

If you or someone you know has a clergy/minister client that needs help with unfiled tax returns,  an audit or some other federal or state tax issue, please feel free to contact me at 270-506-3935 or 270-634-HELP or by email at

                                                                                     Michelle R Brown, EA

Hallmark Accounting & Tax Solutions, LLC

P.O. Box 209

Rineyville, KY  40162

Ph. 270-506-3935 or 270-634-HELP

Fax 270-506-3987




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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Congratulations on writing your first blog post. This is an interesting subject.

Jul 06, 2019 01:51 PM #1
Michelle Brown
Hallmark Accounting & Tax Solutions, LLC - Elizabethtown, KY
Enrolled Agent / Tax Resolution Professional

Thanks Michelle!

Jul 06, 2019 07:27 PM #2
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Welcome to the ActiveRain community. Congratulations on your first post.

Jul 06, 2019 08:23 PM #3
Sara Wagner
Woodland Management Service - Adams, WI
The Forestland Experts!

Interesting first post
Welcome to ActiveRain, I hope that your participation here helps your business to grow.
Btw, I followed your blog, and would be honored if you followed mine.
Thank You!

Jul 10, 2019 10:17 PM #4
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Michelle Brown welcome to ActiveRain and congratulations on successfully posting your first blog on this site.

Jul 13, 2019 02:33 PM #5
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Michelle Brown

Enrolled Agent / Tax Resolution Professional
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