wwNotice 2010-27, 2010-15 IRB, 03/22/2010, IRC Sec(s).
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Headnote:
Reference(s):
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1. Purpose
This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code (Code) for specific locations for 2010. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.
2. Background
Section 911(a) of the Code allows a qualified individual to elect to exclude from gross income the foreign earned income and housing cost amount of such individual. Section 911(c)(1) defines the term “housing cost amount” as an amount equal to the excess of (A) the housing expenses of an individual for the taxable year to the extent such expenses do not exceed the amount determined under section 911(c)(2), over (B) 16 percent of the exclusion amount (computed on a daily basis) in effect under section 911(b)(2)(D) for the calendar year in which such taxable year begins ($250.68 per day for 2010, or $91,500 for the full year), multiplied by the number of days of that taxable year within the applicable period described in section 911(d)(1). The applicable period is the period during which the individual meets the tax home requirement of section 911(d)(1) and either the bona fide residence requirement of section 911(d)(1)(A) or the physical presence requirement of section 911(d)(1)(B). Assuming that the entire taxable year of a qualified individual is within the applicable period, the section 911(c)(1)(B) amount for 2010 is $14,640 ($91,500 x .16).
Section 911(c)(2)(A) of the Code limits the housing expenses taken into account in section 911(c)(1)(A) to an amount equal to (i) 30 percent (adjusted as may be provided under the Secretary's authority under section 911(c)(2)(B)) of the amount in effect under section 911(b)(2)(D) for the calendar year in which the taxable year of the individual begins, multiplied by (ii) the number of days of that taxable year within the applicable period described in section 911(d)(1). Thus, under this general limitation, a qualified individual whose entire taxable year is within the applicable period is limited to maximum housing expenses of $27,450 ($91,500 x .30) in 2010.
Section 911(c)(2)(B) of the Code authorizes the Secretary to issue regulations or other guidance to adjust the percentage under section 911(c)(2)(A)(i) based on geographic differences in housing costs relative to housing costs in the United States. Pursuant to this authority, the Internal Revenue Service (IRS) and the Treasury Department published Notice 2006-87, 2006-2 C.B. 766, and Notice 2007-25, 2007-1 C.B. 760, for 2006, Notice 2007-77, 2007-2 C.B. 735, for 2007, and Notice 2008-107, 2008-2 C.B. 1266, for 2008, to provide adjustments to the limitation on housing expenses for qualified individuals incurring housing expenses in countries with high housing costs relative to housing costs in the United States.
3. Table Of Adjusted Limitations For 2010
The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $27,450) for 2010.
Country
Location
Limitation on Housing Expenses (daily)
Limitation on Housing Expenses (full year)
Angola
Luanda
230.14
84,000
Argentina
Buenos Aires
154.79
56,500
Australia
Adelaide
83.29
30,400
Australia
Brisbane
82.47
30,100
Australia
Gold Coast
82.47
30,100
Australia
Melbourne
105.48
38,500
Australia
Oakey
82.47
30,100
Australia
Perth
112.88
41,200
Australia
Sydney
89.81
32,782
Australia
Toowoomba
82.47
30,100
Austria
Vienna
96.99
35,400
Bahamas, The
Nassau
136.16
49,700
Bahrain
Bahrain
120.55
44,000
Barbados
Barbados
103.29
37,700
Belgium
Antwerp
109.59
40,000
Belgium
Brussels
144.66
52,800
Belgium
Gosselies
129.04
47,100
Belgium
Hoogbuul
109.59
40,000
Belgium
Mons
129.04
47,100
Belgium
SHAPE/Chievres
129.04
47,100
Bermuda
Bermuda
246.58
90,000
Bosnia-Herzegovina
Sarajevo
92.05
33,600
Brazil
Brasilia
151.51
55,300
Brazil
Rio de Janeiro
96.16
35,100
Brazil
Sao Paulo
127.40
46,500
Canada
Calgary
105.75
38,600
Canada
Dartmouth
92.60
33,800
Canada
Edmonton
96.16
35,100
Canada
Halifax
92.60
33,800
Canada
London, Ontario
77.81
28,400
Canada
Montreal
156.71
57,200
Canada
Ottawa
129.32
47,200
Canada
Toronto
128.22
46,800
Canada
Vancouver
122.74
44,800
Canada
Victoria
90.96
33,200
Canada
Winnipeg
84.66
30,900
Cayman Islands
Grand Cayman
131.51
48,000
Chile
Santiago
136.99
50,000
China
Beijing
195.07
71,200
China
Hong Kong
313.15
114,300
China
Shanghai
156.17
57,001
Colombia
Bogota
148.22
54,100
Colombia
All cities other than Bogota and Barranquilla
135.34
49,400
Denmark
Copenhagen
119.74
43,704
Dominican Republic
Santo Domingo
124.66
45,500
Ecuador
Guayaquil
84.38
30,800
Ecuador
Quito
83.56
30,500
Estonia
Tallinn
127.67
46,600
France
Garches
257.26
93,900
France
Le Havre
108.22
39,500
France
Lyon
146.58
53,500
France
Marseille
136.99
50,000
France
Montpellier
121.37
44,300
France
Paris
257.26
93,900
France
Sevres
257.26
93,900
France
Suresnes
257.26
93,900
France
Versailles
257.26
93,900
Germany
Babenhausen
126.30
46,100
Germany
Bad Aibling
107.67
39,300
Germany
Bad Nauheim
100.82
36,800
Germany
Baumholder
120.55
44,000
Germany
Berlin
154.25
56,300
Germany
Birkenfeld
120.55
44,000
Germany
Boeblingen
153.15
55,900
Germany
Bonn
115.07
42,000
Germany
Butzbach
98.63
36,000
Germany
Darmstadt
126.30
46,100
Germany
Erlangen
79.73
29,100
Germany
Frankfurt am Main
131.78
48,100
Germany
Friedberg
100.82
36,800
Germany
Fuerth
79.73
29,100
Germany
Garmisch-Partenkirchen
115.07
42,000
Germany
Geilenkirchen
82.19
30,000
Germany
Gelnhausen
158.90
58,000
Germany
Germersheim
95.34
34,800
Germany
Giebelstadt
109.04
39,800
Germany
Giessen
98.63
36,000
Germany
Grafenwoehr
124.11
45,300
Germany
Hanau
158.90
58,000
Germany
Hannover
94.25
34,400
Germany
Heidelberg
119.45
43,600
Germany
Idar-Oberstein
120.55
44,000
Germany
Ingolstadt
177.81
64,900
Germany
Kaiserslautern, Landkreis
154.52
56,400
Germany
Kitzingen
109.04
39,800
Germany
Leimen
119.45
43,600
Germany
Ludwigsburg
153.15
55,900
Germany
Mainz
170.41
62,200
Germany
Mannheim
119.45
43,600
Germany
Munich
177.81
64,900
Germany
Nellingen
153.15
55,900
Germany
Neubruecke
120.55
44,000
Germany
Nuernberg
79.73
29,100
Germany
Ober Ramstadt
126.30
46,100
Germany
Oberammergau
115.07
42,000
Germany
Pirmasens
154.52
56,400
Germany
Rheinau
119.45
43,600
Germany
Schwabach
79.73
29,100
Germany
Schwetzingen
119.45
43,600
Germany
Seckenheim
119.45
43,600
Germany
Sembach
154.52
56,400
Germany
Stuttgart
153.15
55,900
Germany
Vilseck
124.11
45,300
Germany
Wahn
115.07
42,000
Germany
Wertheim
109.04
39,800
Germany
Wiesbaden
170.41
62,200
Germany
Wuerzburg
109.04
39,800
Germany
Zimdorf
79.73
29,100
Germany
Zweibrueken
154.52
56,400
Germany
All cities other than Augsburg, Babenhausen, Bad Aibling, Bad Kreuznach, Bad Nauheim, Baumholder, Berchtesgaden, Berlin, Birkenfeld, Boeblingen, Bonn, Bremen, Bremerhaven, Butzbach, Cologne, Darmstadt, Delmenhorst, Duesseldorf, Erlangen, Flensburg, Frankfurt am Main, Friedberg, Fuerth, Garlstedt, Garmisch-Partenkirchen, Geilenkirchen, Gelnhausen, Germersheim, Giebelstadt, Giessen, Grafenwoehr, Grefrath, Greven, Gruenstadt, Hamburg, Hanau, Handorf, Hannover, Heidelberg, Heilbronn, Herongen, Idar-Oberstein, Ingolstadt, Kaiserslautern, Landkreis, Kalkar, Karlsruhe, Kerpen, Kitzingen, Koblenz, Leimen, Leipzig, Ludwigsburg, Mainz, Mannheim, Mayen, Moenchen-Gladbach, Muenster, Munich, Nellingen, Neubruecke, Noervenich, Nuernberg, Ober Ramstadt, Oberammergau, Osterholz-Scharmbeck, Pirmasens, Rheinau, Rheinberg, Schwabach, Schwetzingen, Seckenheim, Sembach, Stuttgart, Twisteden, Wahn, Wertheim, Wiesbaden, Worms, Wuerzburg, Zimdorf and Zweibrueken
122.19
44,600
Ghana
Accra
98.63
36,000
Greece
Argyroupolis
98.36
35,900
Greece
Athens
120.55
44,000
Greece
Elefsis
120.55
44,000
Greece
Ellinikon
120.55
44,000
Greece
Mt. Hortiatis
98.36
35,900
Greece
Mt. Parnis
120.55
44,000
Greece
Mt. Pateras
120.55
44,000
Greece
Nea Makri
120.55
44,000
Greece
Perivolaki
98.36
35,900
Greece
Piraeus
120.55
44,000
Greece
Souda Bay (Crete)
78.63
28,700
Greece
Tanagra
120.55
44,000
Greece
Thessaloniki
98.36
35,900
Guatemala
Guatemala City
108.49
39,600
Guyana
Georgetown
95.89
35,000
Holy See, The
Holy See, The
171.23
62,500
Hungary
Budapest
89.04
32,500
Hungary
Papa
121.92
44,500
India
Mumbai
186.08
67,920
India
New Delhi
82.88
30,252
Indonesia
Jakarta
103.50
37,776
Ireland
Dublin
149.04
54,400
Ireland
Limerick
84.11
30,700
Ireland
Shannon Area
114.52
41,800
Israel
Tel Aviv
139.18
50,800
Italy
Catania
100.27
36,600
Italy
Genoa
110.68
40,400
Italy
Gioia Tauro
85.48
31,200
Italy
La Spezia
110.68
40,400
Italy
Leghorn
107.40
39,200
Italy
Milan
256.16
93,500
Italy
Naples
162.47
59,300
Italy
Pisa
107.40
39,200
Italy
Pordenone-Aviano
130.14
47,500
Italy
Rome
171.23
62,500
Italy
Sardinia
87.95
32,100
Italy
Sigonella
100.27
36,600
Italy
Turin
128.22
46,800
Italy
Verona
81.92
29,900
Italy
Vicenza
131.23
47,900
Italy
All cities other than Avellino, Brindisi, Catania, Florence, Gaeta, Genoa, Gioia Tauro, La Spezia, Leghorn, Milan, Mount Vergine, Naples, Nettuno, Pisa, Pordenone-Aviano, Rome, Sardinia, Sigonella, Turin, Verona, and Vicenza.
103.01
37,600
Jamaica
Kingston
112.88
41,200
Japan
Akashi
98.63
36,000
Japan
Akizuki
86.85
31,700
Japan
Atsugi
124.66
45,500
Japan
Camp Zama
124.66
45,500
Japan
Chiba-Ken
124.66
45,500
Japan
Fussa
124.66
45,500
Japan
Gifu
80.00
29,200
Japan
Gotemba
94.25
34,400
Japan
Haneda
124.66
45,500
Japan
Iwakuni
88.77
32,400
Japan
Kanagawa-Ken
124.66
45,500
Japan
Komaki
80.00
29,200
Japan
Machidi-Shi
124.66
45,500
Japan
Misawa
108.22
39,500
Japan
Nagoya
103.52
37,786
Japan
Okinawa Prefecture
154.52
56,400
Japan
Osaka-Kobe
248.39
90,664
Japan
Sagamihara
124.66
45,500
Japan
Saitama-Ken
124.66
45,500
Japan
Sasebo
103.29
37,700
Japan
Tachikawa
124.66
45,500
Japan
Tokyo
295.62
107,900
Japan
Tokyo-to
124.66
45,500
Japan
Yokohama
162.19
59,200
Japan
Yokosuka
150.41
54,900
Japan
Yokota
124.66
45,500
Kazakhstan
Almaty
131.51
48,000
Korea
Camp Carroll
77.53
28,300
Korea
Camp Colbern
140.82
51,400
Korea
Camp Market
140.82
51,400
Korea
Camp Mercer
140.82
51,400
Korea
K-16
140.82
51,400
Korea
Kimpo Airfield
140.82
51,400
Korea
Munsan
85.21
31,100
Korea
Osan AB
87.95
32,100
Korea
Pyongtaek
86.30
31,500
Korea
Seoul
140.82
51,400
Korea
Suwon
140.82
51,400
Korea
Taegu
85.48
31,200
Korea
Uijongbu
82.47
30,100
Korea
Waegwan
77.53
28,300
Korea
All cities other than Ammo Depot #9, Camp Carroll, Camp Colbern, Camp Market, Camp Mercer, Changwon, Chinhae, Chunchon, K-16, Kimhae, Kimpo Airfield, Kunsun, Kwangju, Munsan, Osan AB, Pusan, Pyongtaek, Seoul, Suwon, Taegu, Tongduchon, Uijongbu, and Waegwan
80.27
29,300
Kuwait
Kuwait City
176.44
64,400
Kuwait
All cities other than Kuwait City
158.08
57,700
Luxembourg
Luxembourg
140.55
51,300
Macedonia
Skopje
96.99
35,400
Malaysia
Kuala Lumpur
126.58
46,200
Malaysia
All cities other than Kuala Lumpur
92.33
33,700
Malta
Malta
131.51
48,000
Mexico
Hermosillo
76.16
27,800
Mexico
Mazatlan
84.93
31,000
Mexico
Merida
103.84
37,900
Mexico
Mexico City
125.21
45,700
Mexico
Monterrey
90.96
33,200
Mexico
All cities other than Ciudad Juarez, Cuernavaca, Guadalajara, Hermosillo, Matamoros, Mazatlan, Merida, Metapa, Mexico City, Monterrey, Nogales, Nuevo Laredo, Tapachula, Tijuana, Tuxtla Gutierrez, and Veracruz
107.95
39,400
Micronesia
Pohnpei
77.26
28,200
Mozambique
Maputo
98.63
36,000
Namibia
Windhoek
87.95
32,100
Netherlands
Amsterdam
144.93
52,900
Netherlands
Aruba
98.63
36,000
Netherlands
Brunssum
117.26
42,800
Netherlands
Eygelshoven
117.26
42,800
Netherlands
Hague, The
196.44
71,700
Netherlands
Heerlen
117.26
42,800
Netherlands
Hoensbroek
117.26
42,800
Netherlands
Hulsberg
117.26
42,800
Netherlands
Kerkrade
117.26
42,800
Netherlands
Landgraaf
117.26
42,800
Netherlands
Maastricht
117.26
42,800
Netherlands
Papendrecht
123.01
44,900
Netherlands
Rotterdam
123.01
44,900
Netherlands
Schaesburg
117.26
42,800
Netherlands
Schinnen
117.26
42,800
Netherlands
Schiphol
144.93
52,900
Netherlands
Ypenburg
196.44
71,700
Netherlands
All cities other than Amsterdam, Aruba, Brunssum, Coevorden, Eygelshoven, The Hague, Heerlen, Hoensbroek, Hulsberg, Kerkrade, Landgraaf, Maastricht, Margraten, Papendrecht, Rotterdam, Schaesburg, Schinnen, Schiphol, and Ypenburg.
104.93
38,300
Netherlands Antilles
Curacao
125.48
45,800
New Zealand
Auckland
97.81
35,700
New Zealand
Wellington
92.60
33,800
Nicaragua
Managua
87.12
31,800
Norway
Oslo
145.21
53,000
Norway
Stavanger
123.56
45,100
Norway
All cities other than Oslo and Stavanger.
103.29
37,700
Panama
Panama City
97.26
35,500
Philippines
Cavite
100.00
36,500
Philippines
Manila
100.00
36,500
Philippines
All cities other than Cavite and Manila
76.44
27,900
Poland
Poland
80.55
29,400
Portugal
Alverca
156.71
57,200
Portugal
Lajes Field
84.11
30,700
Portugal
Lisbon
156.71
57,200
Qatar
Doha
99.35
36,264
Qatar
All cities other than Doha
88.77
32,400
Russia
Moscow
295.89
108,000
Russia
Saint Petersburg
164.38
60,000
Russia
Sakhalin Island
212.33
77,500
Russia
Vladivostok
212.33
77,500
Russia
Yekaterinburg
129.86
47,400
Rwanda
Kigali
86.30
31,500
Saudi Arabia
Jeddah
84.02
30,667
Saudi Arabia
Riyadh
109.59
40,000
Singapore
Singapore
171.78
62,700
South Africa
Pretoria
107.67
39,300
Spain
Barcelona
111.23
40,600
Spain
Madrid
209.04
76,300
Spain
Rota
120.55
44,000
Spain
Valencia
120.00
43,800
Spain
All cities other than Barcelona, Madrid, Rota and Valencia
90.68
33,100
Suriname
Paramaribo
90.41
33,000
Switzerland
Bern
169.32
61,800
Switzerland
Geneva
232.60
84,900
Switzerland
Zurich
107.45
39,219
Switzerland
All cities other than Bern, Geneva and Zurich
90.14
32,900
Taiwan
Taipei
126.54
46,188
Thailand
Bangkok
140.00
51,100
Turkey
Ankara
87.95
32,100
Turkey
Elmadag
87.95
32,100
Turkey
Izmir-Cigli
86.58
31,600
Turkey
Manzarali
87.95
32,100
Turkey
Yamanlar
86.58
31,600
Ukraine
Kiev
197.26
72,000
United Arab Emirates
Abu Dhabi
136.13
49,687
United Arab Emirates
Dubai
156.64
57,174
United Kingdom
Basingstoke
112.60
41,099
United Kingdom
Bath
112.33
41,000
United Kingdom
Bracknell
170.14
62,100
United Kingdom
Bristol
106.03
38,700
United Kingdom
Cambridge
117.81
43,000
United Kingdom
Caversham
202.19
73,800
United Kingdom
Cheltenham
147.67
53,900
United Kingdom
Croughton
121.10
44,200
United Kingdom
Fairford
121.10
44,200
United Kingdom
Farnborough
149.86
54,700
United Kingdom
Felixstowe
115.07
42,000
United Kingdom
Gibraltar
122.24
44,616
United Kingdom
Harrogate
127.12
46,400
United Kingdom
High Wycombe
170.14
62,100
United Kingdom
Kemble
121.10
44,200
United Kingdom
Lakenheath
150.41
54,900
United Kingdom
Liverpool
106.30
38,800
United Kingdom
London
233.15
85,100
United Kingdom
Loudwater
173.97
63,500
United Kingdom
Menwith Hill
127.12
46,400
United Kingdom
Mildenhall
150.41
54,900
United Kingdom
Oxfordshire
121.10
44,200
United Kingdom
Plymouth
121.10
44,200
United Kingdom
Portsmouth
121.10
44,200
United Kingdom
Reading
170.14
62,100
United Kingdom
Rochester
125.75
45,900
United Kingdom
Southampton
121.10
44,200
United Kingdom
Surrey
132.61
48,402
United Kingdom
Waterbeach
129.59
47,300
United Kingdom
Wiltshire
113.97
41,600
United Kingdom
All cities other than Basingstoke, Bath, Belfast, Birmingham, Bracknell, Bristol, Brough, Bude, Cambridge, Caversham, Chelmsford, Cheltenham, Chicksands, Croughton, Dunstable, Edinburgh, Edzell, Fairford, Farnborough, Felixstowe, Ft. Halstead, Gibraltar, Glenrothes, Greenham Common, Harrogate, High Wycombe, Hythe, Kemble, Lakenheath, Liverpool, London, Loudwater, Menwith Hill, Mildenhall, Nottingham, Oxfordshire, Plymouth, Portsmouth, Reading, Rochester, Southampton, Surrey, Waterbeach, Welford, West Byfleet, and Wiltshire.
119.45
43,600
Venezuela
Caracas
156.16
57,000
Vietnam
Hanoi
128.22
46,800
Vietnam
Ho Chi Minh City
115.07
42,000
4. Housing Limitation For 2009
Except as provided in section 5, the limitation for qualified individuals incurring housing expenses in taxable years beginning in 2009 is as follows. For taxable years beginning in calendar year 2009, the foreign earned income exclusion amount under § 911(b)(2)(D) is $91,400. Thus, a qualified individual whose entire 2009 taxable year is within the applicable period is generally limited to maximum housing expenses of $27,420 ($91,400 x .30). Because location amounts were not published for 2009, qualified individuals incurring housing expenses in 2009 in locations listed in the “Table of Adjusted Limitations for 2008” in Notice 2008-107 should use the amounts found in that table (which can also be found in the Instructions to Form 2555 (2009)) to determine their adjusted limitation for 2009.
5. Election To Apply 2010 Adjusted Limitations To 2009 Taxable Year
For some locations, the limitation on housing expenses provided in section 3 of this notice may be higher than the limitation on housing expenses provided in the “Table of Adjusted Limitations for 2008” in Notice 2008-107. A qualified individual incurring housing expenses in such a location during 2009 may apply the adjusted limitation on housing expenses provided in section 3 of this notice in lieu of the amounts provided in the “Table of Adjusted Limitations for 2008” in Notice 2008-107 (and as set forth in the Instructions to Form 2555 (2009)).
Treasury and the IRS anticipate that future annual notices providing adjustments to housing expense limitations will make a similar election available to qualified individuals that incur housing expenses in the immediately preceding year. For example, when adjusted housing expense limitations for 2011 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2010 taxable year.
Effect On Other Documents
This notice supersedes Notice 2006-87, 2006-2 C.B. 766, Notice 2007-25, 2007-1 C.B. 760, Notice 2007-77, 2007-2 C.B. 735, and Notice 2008-107, 2008-2 C.B. 1266.
Effective Date
This notice is effective for taxable years beginning on or after January 1, 2010. However, as provided in section 5, a taxpayer may elect to apply the 2010 adjusted housing limitations contained in section 3 of this notice to his or her taxable year beginning in 2009.
Drafting Information
The principal author of this notice is Susan E. Massey of the Office of Associate Chief Counsel (International). For further information regarding this notice contact Ms. Massey at (202) 622-3840 (not a toll-free call).
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