Common use of CONGREGATION PROVIDES A PARSONAGE Clause in Contracts

CONGREGATION PROVIDES A PARSONAGE. A. The Fair Rental Value of the Parsonage is the amount of money that the congregation could reasonably expect to receive annually if it used the parsonage as a rental home. To calculate this amount, take into consideration: • the actual condition of the parsonage; • the location of the parsonage; and • the actual cost of any utilities paid by the congregation on the pastor's behalf. (Asking a Realtor for help is a very good idea. Xxxxxx.xxx overestimates both the sale and rental values, and does not assess the actual condition of the building.) The Fair Rental Value (or FRV) of the parsonage affects the pastor's taxes: the pastor must pay self-employment taxes on the annual FRV amount, as well as on the pastor's cash salary, including the designated housing exclusion. The FRV of the parsonage is also used in calculating the pastor's pension contributions and short- and long-term disability insurances.

CONGREGATION PROVIDES A PARSONAGE. A. The Fair Rental Value of the Parsonage is the amount of money that the congregation could reasonably expect to receive annually if it used the parsonage as a rental home. To calculate this amount, take into consideration: • the actual condition of the parsonage; • the location of the parsonage; and • the actual cost of any utilities paid by the congregation on the pastor's behalf. (Asking a Realtor for help is a very good idea. Xxxxxx.xxx overestimates both the sale and rental values, and does not assess the actual condition of the building.) The Fair Rental Value (or FRV) of the parsonage affects the pastor's taxes: the pastor must pay self-employment taxes on the annual FRV amount, as well as on the pastor's cash salary, including the designated housing exclusion. The FRV of the parsonage is also used in calculating the pastor's pension Pension contributions and short- Short- and longLong-term disability insurancesDisability Insurances.