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Can a minister, who received a housing allowance as part of his compensation, take a deduction for a home office to reduce the amount of self employment tax that he has to pay? I am thinking the answer is no, but I need some
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"The answer to this question is no.
A 1964 Tax Case (Deason v. Commissioner) stated that any deduction related to tax-exempt income cannot be claimed. Deducting income for clergy housing and then deducting again for a home office at that same location would amount to taking a double deduction, which is not allowed. In general, the Clergy Housing allowance is a far better deduction than the home office deduction, so if you have a choice between the two, you want to go with the Housing Allowance."
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Thank you so much for your reply. This is very helpful. I was fairly certain of the answer, just needed something definitive to convince the client.
