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So you have a copy of the conversation and you are saying that the reporter didn't add that word "tax free" to the characterization of the housing allowance?
A minister's housing allowance, sometimes called a parsonage allowance or a rental allowance is excludable from gross income for income tax purposes but not for self-employment tax purposes.
Services that a duly ordained, commissioned or licensed minister performs in the exercise of his or her ministry are generally covered under the Self-Employment Contributions Act (SECA). This means the minister is exempt from social security and Medicare withholding, but the minister is responsible for paying self-employment tax on his or her net earnings from self-employment.
I'm not an accountant. But it seems like a skilled one could make that "net earnings" figure quite small. The housing allowances are income tax exempt.
Location: Some got six month some got one solid. But me and my buddies all got lifetime here
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Personally I wouldn't mind living next to someone like that. Helicopters aside, at least we could assume the wild parties would be kept to a minimum and the noise would be low. Might be a good spot to recommend to a newbie looking for info around that area.
Exactly. I have watched that "report" 4 times now and the only thing that stands out to me is that there is a lot of talk going on -- and offering of OPINIONS and SPECULATION.
A minister's housing allowance, sometimes called a parsonage allowance or a rental allowance is excludable from gross income for income tax purposes but not for self-employment tax purposes.
Services that a duly ordained, commissioned or licensed minister performs in the exercise of his or her ministry are generally covered under the Self-Employment Contributions Act (SECA). This means the minister is exempt from social security and Medicare withholding, but the minister is responsible for paying self-employment tax on his or her net earnings from self-employment.
I'm not an accountant. But it seems like a skilled one could make that "net earnings" figure quite small. The housing allowances are income tax exempt.
It is not excludable for self-employment tax purposes! I am no CPA either but I am a small business owner and I know how to read IRS regs.
It doesn't matter what you or your skilled CPA might be able to do as far as these statements that are floating around in the media and on this forum.
It doesn't matter how little taxes are paid. If any are paid, it is not TAX FREE.
Location: Some got six month some got one solid. But me and my buddies all got lifetime here
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Quote:
Originally Posted by coped
A minister's housing allowance, sometimes called a parsonage allowance or a rental allowance is excludable from gross income for income tax purposes but not for self-employment tax purposes.
Services that a duly ordained, commissioned or licensed minister performs in the exercise of his or her ministry are generally covered under the Self-Employment Contributions Act (SECA). This means the minister is exempt from social security and Medicare withholding, but the minister is responsible for paying self-employment tax on his or her net earnings from self-employment.
I'm not an accountant. But it seems like a skilled one could make that "net earnings" figure quite small. The housing allowances are income tax exempt.
It is not excludable for self-employment tax purposes! I am no CPA either but I am a small business owner and I know how to read IRS regs.
It doesn't matter what you or your skilled CPA might be able to do as far as these statements that are floating around in the media and on this forum.
It doesn't matter how little taxes are paid. If any are paid, it is not TAX FREE.
So stop the madness.
It is income-tax free. He only really has to pay FICA on it - which he doesn't on his other income. This is money that will come back to him. Not income tax. It is tax free. Typing in caps and shooting the messenger won't change the fact.
Yes, I am going to assume sections of that article are correct. The sections that are not personally biased clearly stating facts the writer has at hand.
"The most important connection between Ed Young and Steven Furtick? Young served on Furtick's board of overseers, which set Furtick's salary. WFAA-TV, NBC Charlotte’s sister station in Dallas, Texas, reports that Young gets a housing allowance worth $250,000 dollars a year, tax-free."
"No one at Elevation Church will talk about how much, if anything, Furtick receives as a housing allowance. Executive pastor James “Chunks” Corbett confirms pastors at the church get a tax-free housing allowance, and confirms Furtick took out a construction loan to build his home."
"Reports" and "Confirms" are not words used to describe someones "opinion".
Please remember Furtick is not clergy, nor an ordained or even a licensed minister for that matter. The IRS stuff you are using does not apply. Was not sure if you knew that or not. Maybe that will help clear up the confusion.
No, I didn't know that Furtick isn't clergy and isn't ordained. If someone is referred to as a Priest or Minister (re: my Catholic/Anglican/Episcopalian/Lutheran background) . . . that means this person has been ordained. Otherwise, they may be a Lay Minister or a "Preacher."
That does change things, if that is a fact.
One reason I don't feel I can trust anything off websites or even from a reporter about Elevation or Furtick is b/c I am seeing all sorts of conflicting info about that church and Furtick, too, all over the web.
One website references that Furtick is an ordained minister and has a master's degree in Theology.
It is income-tax free. He only really has to pay FICA on it - which he doesn't on his other income. This is money that will come back to him. Not income tax. It is tax free. Typing in caps and shooting the messenger won't change the fact.
It is a moot point if, as SLOANTE says, Furtick is not really an ordained minister, lol.
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