PERSONAL TAX TRAINING

CLERGY RESIDENCE DEDUCTION

Understanding the Deduction

Clergy members who are required to maintain a residence as a condition of their ministry may be eligible to claim a deduction for housing-related expenses on their T1 tax return. This deduction is intended to help offset the cost of maintaining a residence that is essential for performing your religious duties.

Eligibility Criteria

To qualify for the Clergy Residence Deduction, you must meet these requirements:

• You are employed as a clergy member or minister within a recognized religious organization.
• Your employer or congregation requires you to maintain a designated residence for your ministry.
• The housing expenses you incur are not fully reimbursed by your employer.
• You retain a signed declaration or supporting documentation confirming that these expenses are a mandatory part of your employment.

Qualifying Expenses

The following expenses may be considered eligible, provided they are directly related to maintaining your residence for ministry purposes:

• Rent or Mortgage Costs: A portion of rent or mortgage interest for the residence used for ministry.
• Utilities and Property Taxes: Expenses such as heating, electricity, water, and property taxes related to the residence.
• Maintenance and Repairs: Costs incurred for upkeep and necessary repairs.
• Insurance: Home or contents insurance premiums tied to the designated residence.

Only the expenses directly associated with the upkeep of the residence qualify, and any personal usage must be appropriately excluded.

Claiming and Filing

When filing your T1 tax return, follow these steps to claim the deduction:

• Report the eligible expenses in the designated section of your tax return.
• Attach any necessary forms or supporting documents as required by the CRA.
• Keep all receipts and records for a minimum of six years in case of a CRA review.

Additional Considerations

Tax rules for clergy residence deductions may change over time. It is important to:

• Review the most recent CRA guidelines to confirm the eligibility and limits.
• Ensure that you are not double claiming any expenses that might already be covered under a parsonage allowance or other benefits.
• Consult with a tax professional if you have complex situations or partial reimbursements.

Disclaimer

The information provided on this page is for general informational purposes only and does not constitute professional tax advice. Please consult a tax professional for advice tailored to your unique circumstances.

If you need professional advice, you can book an appointment by calling 403-475-8600 or by visiting our booking page.

Last updated: February 2025

For further details, please refer to the Canada Revenue Agency website or consult the latest CRA publications on clergy housing expenses.