U.S. citizen Patrick is a bona fide resident of a foreign country for all of the current year. Patrick uses a calendar year as his tax year. He has $100,000 of self-employment income and incurs $20,000 in housing expenses. The base housing cost amount is $17,216. The deduction for housing expenses is
A)$16,624 for AGI.
B)$16,624 from AGI.
C)$2,784 for AGI.
D)$6,816 from AGI.

Question

Quizplus · Accepted Answer

The housing deduction is the excess of actual housing expenses over the base housing amount. Here, $20,000 - $17,216 = $2,784, which is deductible for AGI.

US Citizen Patrick Is a Bona Fide Resident of a Foreign