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William Byrnes (Texas A&M) tax & compliance articles

Posts Tagged ‘foreign housing expenses’

Tax Treatment of Offshore Real Estate Holdings and Foreign Housing Expenses

Posted by William Byrnes on October 6, 2014


AdvisorFYI » Tax Treatment of Offshore Real Estate Holdings and Foreign Housing Expenses.

by Mr. Edward D. Nieto

The Internal Revenue Service (IRS) does not require that offshore real estate be reported as a foreign financial asset such as a personal residence or a rental property held by an American expatriate or a United States Government employee working overseas.1It is only when the real estate is held through a foreign entity such as a corporation, partnership, trust or estate, that the interest in the entity needs to be specified and reported as foreign financial asset if the total value of all specified foreign financial assets is greater than the applicable reporting threshold.2

Read on at AdvisorFYI » Tax Treatment of Offshore Real Estate Holdings and Foreign Housing Expenses

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Foreign Housing Allowance for United States Government Employees – Taxable or Non-taxable?

Posted by William Byrnes on April 10, 2014


EDN PhotoThe gross income of United States citizens and resident aliens is taxable on a worldwide basis.  In most cases, compensation for personal services such as employer payments for housing expenses is fully taxable as an employee fringe benefit unless specifically excluded from taxation.  But there are exceptions to the taxation of housing allowances such as the special rules for members of the clergy or Peace Corps volunteers.

Qualified individuals may either exclude or deduct foreign housing expenses if they have incurred housing expenses while living and working aboard. Foreign housing allowances paid to United States Government employees are treated as reimbursements for actual housing expenses and, therefore, not subject to taxation.

Link to Edward Nieto’s full analysis in his article Foreign Housing Allowance for United States Government Employees – Taxable or Non-taxable? on AdvisorFYI

Edward Nieto is a U.S. Government civilian working in Germany as a business advisor.  He has over 25 years of combined military, government, and defense industry experience.  He has also worked as a VITA tax advisor in support of military and government personnel overseas.  He may be contacted at edn2000@outlook.com

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