Level 15
"our minister is paid a cash compensation of $76,700/year.  He lives rent/utilities free in the church's residence"
If he is provided cash compensation PLUS rent-free accommodation, why would you subtract FMV of the rental from $76,700?

"He has opted out of SS, SE."
He cannot "opt out" of self-employment tax.  There are specific conditions that must be met, the exemption must be applied for, and it must be approved by the IRS.

In case you are not an accountant, you should consult a qualified tax accountant for implementation details.
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