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Tax Planning for Clergy, Gary Hayes and Debra McGilsky, Central Michigan University, School of Accounting, Mt. Pleasant, MI 48859

Clergy represent one of the few professions subject to tax laws unique just to them. As a result, anyone who serves on a religious board or finance committee, or who serves as treasurer for a religious organization, needs to be aware of the tax compliance complexities and planning opportunities clergy face. This paper addresses one of the most challenging of these complexities, the clergy's housing allowance. This provision allows a sizable portion of compensation to be exempt from tax, however, calculating it can be confusing. The paper discusses the optimal way a clergy's compensation package should be allocated between his/her regular salary and his/her housing allowance so that the amount of income and self-employment taxes is minimized. It addresses clergy who live in organization-provided homes, as well as clergy who live in their own home, and clarifies the specific items that may be included in their allowable housing expenses, an amount used to determine the taxable portion of the allowance. It also identifies the required accounting and record-keeping rules needed to substantiate the allowance, including resolutions boards must make to ensure optimal tax results. A case study is provided to illustrate the mechanics of the calculation.

Tax Consequences of Selling a Principal Residence. William C. Hood, Central Michigan University, School of Accounting, Mt. Pleasant, MI 48859

When a taxpayer sells his or her principal residence, there are numerous tax advantages. However, as is almost always the case, the Internal Revenue Code has strict requirements that must he met if the taxpayer is to attain these tax benefits. This paper will explain these requirements and will suggest planning techniques that taxpayers should follow to assure they will qualify' for all of the tax benefits that are allowed to those who sell their principal residence.

The Administrative Case for Sustainability as a Business Strategy, jack D. Cichy, Davenport University, Donald W. Maine, School of Business Management Department, Grand Rapids, MI 49512

Sustainability or SBP practices can he defined in numerous ways. Some administrators view Sustainability as creating social and shareholder value while simultaneously decreasing negative environmental impact. Others view Sustainability as 'taking care of people first'. The Procter and Gamble Corporation provides meaning to the concept of Sustainability in a simple and succinct context: "It is about ensuring a better quality of life for everyone, now and for future generations to come." Sustainability and SBP focus on financial capital, ecological (environmental) capital and social capital, or the triple bottom line. As such, SBP or the Sustainability movement is a component of the broader business movement toward greater administrative social responsibility. …