The opinion of the court was delivered by: Igoe, District Judge.
This cause having come on for hearing on cross-motions for
summary judgment, based on a stipulation-of-facts and on an
affidavit of petitioner, the Court, having considered the
arguments of counsel and being fully advised in the premises,
makes the following findings of fact and conclusions of law:
1. Petitioner has been at all times material herein a regularly
ordained minister of the Protestant Episcopal Church in the
United States of America, resident in the Village of Wilmette,
Cook County, Illinois.
2. During all of the calendar year 1947, petitioner was
employed full time as Assistant Rector by "The Rector, Church
Wardens and Vestrymen of Christ Church, Winnetka, Illinois"
(hereinafter referred to as "Christ Church"), a religious
corporation duly organized and existing under the laws of the
State of Illinois and affiliated with the Protestant Episcopal
Church in the United States of America.
3. During 1947, "Christ Church", not having housing available,
allowed petitioner the sum of $100 per month as a dwelling house
allowance, in addition to his salary.
4. Being unable to rent, petitioner purchased a dwelling house
which he occupied with his family during all of 1947.
5. Petitioner's expenditures on account of said dwelling house
during 1947 were at a rate in excess of $100 per month, as
follows: (a) interest on mortgage (excluding payments on account
of principal) — $510.36; (b) real estate tax — $419.70; (c)
insurance on improvements — $39; (d) interest on loan to
petitioner from his father of $15,000 used for down payment on
house, at 3% — $450, total — $1419.06.
6. The fair market rental value of the housing occupied by
petitioner during 1947 was in excess of $100 per month.
7. In his federal income tax return for the year 1947,
petitioner included as taxable income the aggregate amount of
$1200 allowed him as a housing allowance, and deducted from gross
income $249.08 as expense of the house alloted to business use.
This resulted in an increase in net income of $950.92, which
increased petitioner's tax by $234.87.
8. If said $1200 should not have been returned as taxable
income for 1947, petitioner overpaid his income tax for 1947 in
the amount of $234.87.
9. More than six months prior to the bringing of this action,
petitioner filed a claim for refund of said $234.87 with the
Collector of Internal Revenue, at Chicago, Illinois, as agent for
the Commissioner of Internal Revenue; the Commissioner has not
rendered a decision on said claim, and has not notified
petitioner of the disallowance of said claim.
1. The Court has jurisdiction of the parties and the subject
2. The $100-a-month housing allowance paid to petitioner by
"Christ Church" during 1947 is excluded from gross income under
Section 22(b)(6) of the Internal ...