ragan is an ordained minister. He moved to Memphis and lives in the nearby furnished parsonage, which is 1,500 square feet. His previous role was in Philadelphia; the fair rental value (FRV) of his parsonage (1,800 square feet) in Philadelphia was $18,000/year. How should he determine the FRV for the Memphis parsonage?
Consult a Memphis realtor for a documented quote with comparable listings for the house.
Ask the church authorities. They are required to give him the FRV.
Reduce the Philadelphia fair rental value (FRV) by the size ratio of the new parsonage to the Memphis parsonage.
Estimate the fair rental value (FRV) based on other properties available in the area.
