Level 15
That simple statement says that the Pastor should have a Schedule E. $10,000 gross rents. $40,000 interest expense. Depreciation on the Cost of the Church (less land) and Depreciation (or maybe amortization) on the renovation expense.
The Church is separate from the Pastor. The Church files it's own tax return. The church will not be issuing a K-1 to anyone, only GOD can do that, but he/she does not need to file as he/she is not physically present in the USA.

ex-AllStar