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IRS Tax Q for Americans

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Old 10th Jul 2007, 07:50
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IRS Tax Q for Americans

As an american, how can you be certain that you may exclude the value of your housing in your earned income at EK. IRS publication 54 specifically states

The lodging is furnished:
  1. On the business premises of your employer,
  2. For the convenience of your employer, and
  3. As a condition of your employment
I have gone over this in my head a thousand times, and I am pretty certain that "by the book" the fair value of our accomodation must be included in our earned income, which will easily put US EK FO's over the 82400 exclusion and put US EK CA's way way over the 82400. I know a lot of us are taking the approach "no one is looking", so please only serious responses with source info from IRS.gov would be appreciated.
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Old 10th Jul 2007, 07:55
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forgot the IRS link

http://www.irs.gov/publications/p54/index.html
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Old 10th Jul 2007, 13:18
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What are the chances that the IRS will come all the way over to the Middle East for an audit? If the company is not including the housing allowance in your payslip, shouldn't you be ok? Just curious, that's all.
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Old 10th Jul 2007, 16:29
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What are the chances that the IRS will come all the way over to the Middle East for an audit?
It's the other way around that you have to worry about
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Old 10th Jul 2007, 16:42
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Or you could simply find a qualified tax accountant locally and have them give their professional interpretation on it.
K
 
Old 11th Jul 2007, 06:14
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Well said Touk. Also, I am no longer living in the country, using the infrastructures etc. I ain't payin' for somethin' I ain't usin'.
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Old 11th Jul 2007, 07:12
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touk/Homer,

Those are the sentiments that have landed many an expat into a lot of hot water once they stepped back home.
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Old 11th Jul 2007, 12:04
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So...do not step back home....the UK is the place for the non UK domiciled to retire and reside Tax free.....the UK is also up for sale to non Uk domiciled folk
and is presently daily celebrating the new population diversity...I think.
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Old 11th Jul 2007, 12:50
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Touk,
You have bigger 'nads than I. Sure they are not going to come after you, but just try and ever go back. You will be giving up your citizenship-maybe not a big deal. But if you go back, or try and get a visa, there just might be a couple of questions asked when you pop up back on the radar. Don't be sending any money back to the US, either. Hey, you get a 20-30K "gift" from the IRS, depending on your tax bracket. If Calif. can go after state employees that retire in Nev. and do it successfully, think how much fun the Feds would be.
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Old 11th Jul 2007, 12:52
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Does anybdy know of a US tax consultant in the UAE, preferably Abu Dhabi.
Thanks, NG
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Old 11th Jul 2007, 13:18
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Don't worry about it guys i am sure Captain America aka Tartan Guy who wrote the article in the WSJ has given them all the info they need.
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