Fred currently earns $11,300 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $12,300 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $108,700. Problem

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
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Fred currently earns $11,300 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $12,300 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $108,700. Problem 5-62 Part-c-2 (Algo) c-2. If Fred’s employer also provides him free housing abroad (cost of $17,150 next year), how much of the $17,150 is excludable from Fred’s income? Assume that Fred will be abroad for 305 days out of 365 days next year.
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