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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.
Discussion
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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