To assist a minister facing this dilemma, a housing equity plan was developed by Clergy Financial Management, whereby congregations can defer, tax free, a portion of the minister's compensation that can be used later to provide housing. For instance, a minister who retires or becomes disabled could use these accumulated funds to make the down payment on a home that he/she might otherwise be unable to purchase. A significant benefit to the minister is that these funds are not taxable until they are actually paid to him/her. Further, if the amounts are designated as housing allowance prior to payment; most, or all of the payments eventually made may be tax-free to the extent used by the minister to provide housing.
This product was added to our catalog on Tuesday 13 March, 2007.