In the case of a minister of the gospel, gross income does not include—
I.R.C. § 107(1) —
the rental value of a home furnished to him as part of his compensation; or
I.R.C. § 107(2) —
the rental allowance paid to him as part of his compensation, to the extent used
by him to rent or provide a home and to the extent such allowance does not exceed
the fair rental value of the home, including furnishings and appurtenances such
as a garage, plus the cost of utilities.
(Aug. 16, 1954, ch. 736, 68A Stat. 32; amended by Pub. L. 107-181, Sec. 2, May 20, 2002, 116 Stat. 583.)
BACKGROUND NOTES
AMENDMENTS
2002 - Pub. L. 107-181, Sec. 2, amended Sec. 107 by inserting “and to the extent such allowance does not exceed
the fair rental value of the home, including furnishings and appurtenances such as
a garage, plus the cost of utilities” before
the period at the end of paragraph (2).
EFFECTIVE DATE OF 2002 AMENDMENT
Section 2(b) of Pub. L. 107-181 provided that:
“(1) In general.--The amendment made by this section shall apply to taxable years
beginning after December 31, 2001.
“(2) Returns Positions.--The amendment made by this section also shall apply to any
taxable year beginning before January 1, 2002, for which the taxpayer--
“(A) on a return filed before April 17, 2002, limited the exclusion under section 107 of the Internal Revenue Code of 1986 as provided in such amendment, or
“(B) filed a return after April 16, 2002.
(3) Other Years Before 2002.--Except as provided in paragraph (2), notwithstanding
any prior regulation, revenue ruling, or other guidance issued by the Internal Revenue
Service, no person shall be subject to the limitations added to section 107 of such
Code by this Act for any taxable year beginning before January 1, 2002.”
