A U.S. citizen is a calendar year taxpayer who was a bona fide resident of and whose
Question:
A U.S. citizen is a calendar year taxpayer who was a bona fide resident of and whose tax home was located in foreign country G for the entire taxable year 2019. B receives an $85,000 salary from B’s employer for services performed in G. B incurs no business expenses. B receives housing provided by B’s employer with a fair rental value of $15,000. The value of the housing furnished by B’s employer is not excluded from gross income under section 119. B pays $10,000 for housing expenses. B’s gross income and foreign earned income for 2019 are $100,000.
On her tax return for 2019 how should B report the salary and housing on her 2019 U.S. tax return assuming she elects the foreign earned income exclusion and the 911(a)(1) limit is $80,000?
South-Western Federal Taxation 2019 Essentials of Taxation Individuals and Business Entities
ISBN: 9781337702966
22nd edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney