A pastor of the correspondent’s church is provided with housing free of charge, and does not receive a fixed and weekly remuneration but, rather, is remunerated by voluntary contributions from congregation members, which he includes in computing his income from a business. CRA stated:
If your pastor earns income from self-employment, any voluntary payments, or other benefits or transfers received as a result of that self-employment are taxable income. …
On the other hand, if the pastor of your church holds an office or employment, he or she will be required to include in computing income … the value of [the] … lodging … [but] may be eligible for the clergy residence deduction by virtue of paragraph 8(1)(c) if he or she satisfies both of the following conditions: [s. 9(1)(c) conditions summarized].