reverend james receives a rental allowance from the employing church the allowance is excluded from income reverend james also has both self employment income and unreimbursed expenses related to his mimistry which of the following statements is most accurate

reverend james must allocate part of the expenses to the excluded allowance

the excludes allowance covers the expenses nothing is deductable

the expenses can be claimed as an adjustment to income

reverend james does not need to claim any of his income