Clergy: You can’t deduct your lake house…

The 11^th Circuit Court of Appeals has ruled that the parsonage allowance income exclusion (IRC § 107(2)) only applies to one house. The taxpayers, Philip & Lynne Driscoll had claimed both their principal residence and their lake house. The Tax Court allowed the exclusion, the 11^th Circuit reversed.

Moral of the story: your parsonage allowance doesn't apply to your vacation home…