The foreign housing exclusion goes hand-in-hand with the foreign earned income exclusion. According to section 911(a) of the federal tax code, a qualified individual under either the bona fide residence test or the physical presence test will be able to exclude from the gross income the housing amount in a foreign country provided for by the employer. Note that "provided for by the employer" does not require that the employer actually procure the housing. If the housing is paid for out of wages paid by the employer, this will meet the test. However, housing expenses in excess of the wages or earnings from self-employment would not qualify.
The tax code defines the “housing amount” as the total of all qualified housing expenses less the “base housing amount.” As a result, it is then important to define what is considered qualified housing expenses as well what the IRS mean by the base housing amount.
Famous quotes containing the words exclusion, foreign and/or housing:
“All men, in the abstract, are just and good; what hinders them, in the particular, is, the momentary predominance of the finite and individual over the general truth. The condition of our incarnation in a private self, seems to be, a perpetual tendency to prefer the private law, to obey the private impulse, to the exclusion of the law of the universal being.”
—Ralph Waldo Emerson (18031882)
“the young men who watch us from the curbs:
They hold the glaze of wonder in their stare
Our crooked backs, hands fetid as old herbs,
The tallow eyes, wax face, the foreign hair!”
—Allen Tate (18991979)
“We have been weakened in our resistance to the professional anti-Communists because we know in our hearts that our so-called democracy has excluded millions of citizens from a normal life and the normal American privileges of health, housing and education.”
—Agnes E. Meyer (18871970)