Global Watch ()
The Internal Revenue Service has issued Notice 2014-29 to provide adjustments to the foreign housing limitations provided under Section 911(c)(2)(B) of the Code. The adjusted limitations are based on geographical locations and are used to determine the maximum allowable annual housing exclusion or deduction for tax years beginning on or after January 1, 2014. Taxpayers may also elect to apply the 2014 adjusted limitations to tax years beginning in 2013.
In practice, an increase in the limitation for a particular location may result in more favorable Section 911 tax benefits for those assignees residing in such locations, depending upon their specific situations – a potentially welcome result for global mobility programs.