NeNe is an accountant and U.S. citizen, who has accepted a permanent position in Madrid, Spain for a Spanish financial services company. This year, NeNe spent the entire year working in Madrid. NeNe's employer paid $40,000 of her Madrid housing expenses this year. What amount of the $40,000 housing payments may NeNe exclude?

Question

Quizplus · Accepted Answer

Since NeNe spent the entire year overseas, she may exclude the lesser of (a) $40,000 housing costs − $16,624 ($103,900 × 0.16) = $23,376 or (b) $14,546 ($103,900 × 0.14). Thus, she may exclude $14,546 of the housing costs paid by her employer.

NeNe Is an Accountant and U