I was recently treasurer of our temple, and the parsonage allowance was a part of the Rabbi’s contract. He owns his home, and probably has a mortgage. I just read that the exemption has, prior to this ruling, been limited to the rental value of the property. That was the IRS position, but a 2000 tax court ruling did not recognize that limitation.
I suspect that this new ruling opens the door for litigation to define the “convenience of the congregation (employer)” for determining the exemption of the rental value of the parsonage.
So Dave, your view seems to be that this ruling will result in a clarification of the process. If so that can only be a good thing.