Question

Question 54 of 75 Rev. Carla Fitzgerald is a full-time minister. The church allows her to use a parsonage that has an annual fair rental value of $26,000. The church pays her an annual salary of $69,000, of which $6,500 is designated for utility costs. Her actual utility costs during the year were $6,000. How much will Rev. Fitzgerald report for income tax purposes?

Answer 1

Taxable income is equal to:

=Annual salary + Designated Utilities cost (-) Utilities cost actually incurred

=69000 + 6500 - 6000

=69,500