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 - $16,208 ($101,300 × .16) = $23,792 or (b) $14,182 ($101,300 × .14). Thus, she may exclude $14,182 of the housing costs paid by her employer.

NeNe Is an Accountant and U