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I own a private chapel of which I am a minister, the chapel is a 501c3 tax exempt LLC. If all of the income of my chapel goes

Fayetteville, NC |

to my housing allowance, would this be considered inurement? Currently I donate half of my income to the chapel annually, and I plan to use the annual funds in the future as a housing allowance under the IRS parsonage exception. Is this permissible, or would this be considered inurement?

Attorney Answers 2

  1. It is a question of fact, and this certainly seems to be more than an incidental private benefit. See some of the court cases that have considered this issue, such as Bubbling Well Church of Universal Love, Inc. v. Commissioner , 74 T.C. 531 (1980) aff'd , 670 F.2d 104 (9th
    Cir. 1980)

  2. This really depends on the individual facts, more of which would need to be known. It would be best to contact a lawyer with experience in the area.

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