Housing Allowance reminder.
Churches must designate a portion of each minister’s compensation as a housing allowance by December 31,2017, in order for ministers who own or rent their homes to receive the full benefit of a housing allowance exclusion for calendar year 2018. The designation should be adopted during a regular or special meeting of the church board, and should be contained in the written minutes of the meeting.
Churches should designate a parsonage allowance for any minister who lives in a parsonage and who is expected to pay some of the expenses of maintaining the parsonage (e.g., utilities, furnishings, repairs, improvements, yard care). For sample housing and parsonage allowance resolutions, see chapter 6 in Richard Hammar’s 2017 Church and Clergy Tax Guide. Source: Richard Hammar’s Essential Reminders.
2018 Mileage Reimbursement Rate announced.
The Internal Revenue Service recently announced that the standard mileage reimbursement rate in 2018 will be 54.5 cents per mile. This is a slight increase over the 2017 rate.