Let’s see, average clergy guy. You buy a $375k house, borrow, say, $300k on that. Mortgage and escrow maybe $2,500/mo or $30k annually. And, yeah, we’re probably talking a two income family.
Add to that utility costs, home improvements, furnishings you buy, maintenance and you’re up to maybe $40k per year in housing expenses.
ALL OF THAT excluded from your income taxes, right off the top.
THEN you get the DOUBLE tax break of using interest as an itemized deduction.
OUR GREAT CLERGY TAX BREAK!
You make the average SBC pastor compensation? You can more than slice that in half for income tax purposes.
Ask your electrician, hairdresser, manicurist, image consultant, mechanic, skinny jeans supplier if they get such a tax break.
And you own the property! You get all the unearned increases in value! Then sell, probably tax free profit on the sale.
Thank God and legislators.
It’s perfectly legal and legitimate but you gotta do it right. Guidestone has good advice but talk to your tax person.
You’re no Kenneth Copeland but you can cut your tax bill.
But, who is worried about that with Biden Bucks flowing?
Oh, don’t forget to pay that self-employment tax on your house, and housing allowance, and other income. You could get into trouble and lose your house over that.
I’ve decided that the SBC is a convention of “haves” and “have nots.” If your average church isn’t large and wealthy enough to pay you more than what would be entry level wages in another profession, you will be a “have not” in real estate, absent getting a larger church or having a spouse with a solid income…or inheritance, or lottery winnings.
You won’t get ahead by playing Wordle every day.