Special rules for the clergy

If you’re a member of the clergy or a religious order or a regular minister of a religious denomination, you may be able to claim a deduction with respect to your residence. The amount of the deduction depends on whether your employer provides the residence or you provide your own residence.

Where your employer provides you with living accommodations, you can deduct the value of the accommodation to the extent that it’s included in your employment income as a taxable benefit.

Where you provide your own living accommodations, you can claim a deduction equal to the least of the following three amounts:

1. Your total remuneration from the office or employment
2. One-third of that total remuneration or $10,000, whichever is greater
3. The rent paid for your residence, including utilities (or an amount equal to the fair rental value of your residence, if owned)

The calculation is adjusted if you’re employed as a clergy for only part of the year or if other amounts are claimed as a deduction with respect to the same accommodation.

To claim the clergy residence deduction, you must file with your income tax return a prescribed form signed by your employer stating that you qualify to claim this deduction.