Housing expense limit adjustments for foreign locations for 2015

Housing expense limit adjustments for foreign locations

The IRS today released an advance copy of Notice 2015-33 providing the adjustments to the limitation on housing expenses, under section 911, for specific locations for 2015.

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The adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States—thus providing an increased amount that a qualified individual can elect to exclude from gross income as a housing cost amount for purposes of section 911.

Notice 2015-33 [PDF 114 KB] provides a table with the adjusted limitations on housing expenses for the foreign locations (in lieu of the otherwise applicable limitation of $30,240) for 2015.

Election to apply 2015 adjusted limitations to 2014

Today's notice is effective for tax years beginning on or after January 1, 2015.

For some locations, however, the limitation on housing expenses provided in today's notice may be higher than the limitation on housing expenses provided in the table of adjusted limitations for 2014 (as provided last year in Notice 2014-29).

Notice 2015-33 provides that a qualified individual, incurring housing expenses in such a location during 2014, may elect to apply the 2015 adjusted housing limitations to the tax year beginning in 2014.

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