The answer to this question depends on whether the pastor\u2019s primary work location is considered to be the church or the parsonage\/home.\u00a0 The church and pastor need to decide where the primary office is located.\u00a0This involves knowing if there is an office at the church (or anywhere else) that is provided for the pastor’s work.\u00a0 If there is no office elsewhere and the church considers the office to be in the parsonage, then that may well be the principal place of work.\u00a0 For the parsonage office to count as the principal place, all of the rules of a home office as defined by the IRS would apply.\u00a0 So, the first question is if there is an office provided at the church for the pastor.\u00a0 If yes and the church considers that to be the primary work location, the miles are considered to be the pastor\u2019s commute and not reimbursable as business miles.<\/p>\n
If there is no other office anywhere else, the church would need to designate where they consider the pastor’s primary work location to be.\u00a0 If it is the parsonage office, miles count as business miles.\u00a0 If it is not the parsonage office, then miles to the primary location from the parsonage are commuting and not business miles.\u00a0 When the primary work location is not at the church, it is helpful to have the primary work location designated as such by the Board of Trustees or S\/PRC for clarity.<\/p>\n
The issue of whether the primary place of business is the parsonage office or church is determined through application of IRS guidelines for home offices (dedicated business use, etc.) and where the church considers the primary location to be.\u00a0 It is important to note, however, that even if it is determined that the parsonage office is the primary work location, the church is not required to pay the mileage to the church.\u00a0 The church can decide not to pay certain business miles even if they qualify.\u00a0 In that case, the pastor may be able to deduct them as unreimbursed business expenses on his\/her tax return if s\/he itemizes and qualifies for any deduction per the IRS rules.<\/p>\n