Locate the relevant Internal Revenue Code section and/or Treasury Department Regulation to address the issues.

Kim green is a minister at a local church. He earns an annual salary of $50,000. His church also pays him an additional $25,000 rental allowance as part of his compensation package. Kim used the $25,000 to pay: (1) the annual rent on his home of $14,000 (fair rental value of his home is $18,000); (2) $4,000 of the food he consumed in his home during the year; and (3) the annual rent of $7,000 for a farm located next to his home. He uses the farmland to grow crops which he sells to local grocers during the year. Kim knows his annual salary of $50,000 is included in his gross income but contacts you to determine what amount, if any, of the additional allowance of $25,000 is included in his gross income. Specifically:

a.What portion, if any, of the rental allowance used to pay the rent on his home (i.e., $14,000) is included in Kims gross income? Cite your answer.

b.What portion, if any, of the rental allowance used to pay for food he consumed in his home (i.e., $4,000) is included in his gross income? Cite your answer.

c.What portion, if any, of the rental allowance used to pay the rent for the farm located next to his home (i.e., $7,000) is included in his gross income? Cite your answer.