EVENT DESCRIPTION
Ministers occupy a unique position in the tax code — one that comes with both significant advantages and a set of rules that can easily trip up even experienced tax professionals. The housing allowance exclusion and dual taxpayer status open doors to distinctive business expense deductions, but they also trigger limitations that most practitioners have never encountered. Chief among them is the Deason Rule — a little-known but critically important IRS provision that directly limits the deductibility of certain ministry-related expenses when a housing allowance is in play.
This course provides a practical, step-by-step look at how ministry-related business expense deductions work, how the Deason Rule applies, and what tax professionals need to know to keep their clergy clients compliant and audit-ready. Instructor Bill Davidson — an ordained minister and 35-year clergy tax specialist — brings real-world examples and clear guidance to a topic that is both highly specialized and frequently mishandled.
You'll also examine common Accountable Plan compliance traps that can create costly reporting errors, how dual taxpayer status shapes the entire expense deduction landscape, and what changes under the OBBBA 2025 mean for ministry tax filings going forward. Whether you're preparing a clergy return for the first time or looking to sharpen your expertise, this course delivers the clarity and confidence needed to get it right.
EVENT OBJECTIVE
Upon completion of this course, participants will be able to:
- Explain the dual taxpayer status framework and how it affects ministry-related expense reporting
- Identify the unique business expense deductions available to ministers and how they differ from those available to traditional employees and self-employed individuals
- Describe how the housing allowance interacts with business expense deductibility
- Define the Deason Rule and explain its basis in federal tax law
- Apply the Deason Rule to calculate allowable limits on ministry expense deductions and self-employment tax
- Identify common Accountable Plan compliance errors in clergy tax preparation and how to avoid them
- Analyze OBBBA 2025 changes affecting clergy business expense reporting and ministry tax compliance
COURSE NAME
Deason Rule Guide for Ministry Tax Compliance
