Read §§ 107 and 265.
A “minister of the gospel” may exclude the housing allowance that a congregation pays to him/her. Such a taxpayer may spend some of this allowance on home mortgage interest (deductible under § 163(h)) or real estate taxes (deductible under § 164(a)(1)). Explain how this is a double dip. How might a congregation, as payor of this allowance, capture some or all of the benefit of the exclusion?