Oscar Haimowitz - Page 5

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          deficiency, respondent included this amount in petitioner's gross           
          income for the 1992 tax year.                                               
               Petitioner included with his 1992 tax return a signed                  
          statement stating that he was a retired clergyman and that the              
          entire pension income had been expended for the housing                     
          allowance.5  Petitioner testified, however, that for other tax              
          years he included with his tax return the above signed statement,           
          but crossed out the prewritten word "clergyman" and wrote in the            
          words "religious functionary" in its place.                                 
               Petitioner bears the burden of proving that respondent's               
          determination is incorrect.  Rule 142(a); Welch v. Helvering, 290           
          U.S. 111, 115 (1933).  Section 107(2) provides that a "minister             
          of the gospel" may exclude from gross income "the rental                    
          allowance paid to him as part of his compensation, to the extent            
          used by him to rent or provide a home."  In order for a minister            
          to exclude a parsonage allowance, three criteria must be met:               
          (1) The minister must provide services which are ordinarily the             
          duties of a "minister of the gospel"; (2) the excluded amounts              
          must actually be used to rent or otherwise provide a home; (3)              
          and the rental allowance must be properly designated.  See sec.             
          1.107-1(a), (b), and (c), Income Tax Regs.                                  

          5  Petitioner used a form-letter he received from the                       
          Synagogue Administrators Association with the heading "Letter (B)           
          When All Of The Pension Has Been Used As A Parish Allowance".               

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