How does a church which already owns a parsonage, sell the parsonage to its pastor?

The church sells the parsonage to the pastor. The pastor assumes the balance of the mortgage and signs a note for the difference between the selling price and mortgage balance, to be paid with, or without, interest at a future date, or when residence is sold.

Attention: Tax Law is subject to interpretation. Please be advised that the material contained on this Web site is for information only and is not intended to be a substitute for professional legal advice. The Stewardship Services Foundation endeavors to update the information on this site on a regular basis, but cannot guarantee its accuracy at all times.