List Only

If you receive a housing allowence would you still be able to deduct the mortgage interest from your taxes?

I know that, per the IRS, the housing allowance is excluded from the person's gross income which would lead me to believe that a person would not be allowed to take the deduction as well. Specifically, I am thinking of a minister. Where a part of his compensation from a church includes a housing allowence. I agree that if this allowence is not a part of their gross income then they should not be allowed to take the deduction.

Public Comments

1. Ok...if I'm understanding you correctly...this housing allowance pays the mortgage on the house. You want to know if someone who is having their house paid for by tax paying citizens can then claim the interest that they don't even pay to begin with (Because tax payers are paying it), as a tax deduction?? I sure hope not...and if they can, that should be CHANGED ASAP. AHAA.... Sorry, I misunderstood. Hmmm...that's a good question, one you'll have to take up with your accountant, or SG seems to have the answer....yea SG!!!
2. What kind of housing allowance? From whom?
3. Any allowance or fringe benefit is your income. You must report this as income. Then you can deduct mortgage interest.
4. The parsonage allowance is the only portion of the tax code that I know of that actually allows a taxpayer to "double dip". The allowance is excluded from the income, and the mortgage interest (and property taxes) can still be deducted on Schedule A. See pub 517 for details: http://www.irs.gov/publications/p517/index.html And: http://www.irs.gov/faqs/faq4-10.html