THE CLERGY
Two tax breaks for members of the clergy are under attack in court. A group wants a court to void the tax exclusion for parsonage allowances and the deduction for real estate taxes and mortgage interest that is available to recipients of these allowances. In its view, preferential tax benefits for ministers that cannot be claimed by other taxpayers are unconstitutional. Seven years ago, an Appeals Court questioned the legality of the breaks in a case concerning the cap on the housing allowance, but IRS swept the issue under the rug, conceding the case after Congress tightened the cap. The current case will require the district court to uphold or nix the breaks (Freedom From Religion Found. v. Geithner, D.C., Calif.).
Two tax breaks for members of the clergy are under attack in court. A group wants a court to void the tax exclusion for parsonage allowances and the deduction for real estate taxes and mortgage interest that is available to recipients of these allowances. In its view, preferential tax benefits for ministers that cannot be claimed by other taxpayers are unconstitutional. Seven years ago, an Appeals Court questioned the legality of the breaks in a case concerning the cap on the housing allowance, but IRS swept the issue under the rug, conceding the case after Congress tightened the cap. The current case will require the district court to uphold or nix the breaks (Freedom From Religion Found. v. Geithner, D.C., Calif.).
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