San Francisco Tax Preparation / CPA: 2020 Foreign Housing Expense Limitations Released

Filed in CCH NEWS FEED by on July 10, 2020

The IRS has provided the adjustments to the limitation on foreign housing expenses for specific locations for tax year 2020. Generally, a qualified individual whose entire tax year is within the applicable period is limited to maximum housing expenses of $32,280 for 2020. Similarly, the computation of the base housing amount is also tied to the maximum foreign earned income exclusion. The base housing amount is 16 percent of the maximum exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the tax year.

The notice also provides a table containing information on adjusted limitations on housing expenses, in lieu of the otherwise applicable limitation of $32,280, for 2020.

Notice 2019-24, I.R.B. 2019-14, 932, and other prior Notices are superseded.

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