United States: IRS releases 2013 adjusted limitations for Section 911 foreign housing exclusion

Global Watch ()

The Internal Revenue Service has issued Notice 2013-31 to provide adjustments to the Foreign Housing Expense limitations provided under Internal Revenue Code Section 911(c)(2)(B). The adjusted limitations are based on geographic locations and are used to determine the housing exclusion or deduction for tax years beginning on or after January 1, 2013. Taxpayers may also elect to apply the 2013 adjusted limitations to tax years beginning in 2012. 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.