Question

NeNe is an accountant and a U.S. citizen who has accepted a permanent position in Madrid, Spain, for a Spanish financial services company. This year, NeNe spent the entire year working in Madrid. NeNe's employer paid $40,000 of her Madrid housing expenses this year. What amount of the $40,000 housing payments may NeNe exclude?

Multiple Choice

• NeNe can exclude all of the housing payment because she worked more than 330 days overseas.

• $16,944

• $23,056

• $14,826

• None of her salary can be excluded from gross income.

Answer 1

mul C CA "$ 76,94 " vs the amount that can be excempled The Foreign Housing Escolusion has allowed to dealet the Ercolod ug housing excpenses which is paid by the employer rundle the condition that the employer provar amounts are over 16t of the FEIE amount f that year. 0 yeave. FEIE stands You Foreign Earned Income Ecclusion. To ensure that the us expat are eligible You Foreign cousing ercclusion mentioned above, they need to qualify for the FEI. here are following two considerations to qualify for the FEIE : (1) Pass the folysical beesence test youre which the yerson or individual need to be outside of us for 330 full days in a convecuttue 12 months period, that begins oe ends in ta

(2) The individual need to pass the Bona Fidle Rest Test for which the needs to be a resident in a youcign | country and be subject to local income taxes for at least a full tanc year.

Wow, we can see one of these conditions is fulfilled in case of Nene" ie; she is permanently settled Cin foreign counter outside of us for more the 330 days. cond to qualify for FEIE, one needs to fulfill any one condition. Yleuce Were qualified four FEIE anal can enempt amount $16944 housing payments (according to "Foreigrt Hlousing Excclusion). V