How are clergy housing allowances

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Problem 1: How are clergy housing allowances and the fair rental value of provided housing treated for tax purposes?

Option 1: For active clergy, the amounts are included in gross income for self-employment and income taxes.

Option 2: For active clergy, the amounts are included in gross income for self-employment tax, but excluded for income tax.

Option 3: For all clergy, the amounts are excluded from gross income for both self-employment and income taxes.

Option 4: For all clergy, the amounts are excluded for self-employment tax, but included for income tax.

Reference no: EM132619197

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