section 911 allowances

Notice 2010-27, 2010-15 IRB, 03/22/2010, IRC Sec(s).

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Headnote:

Reference(s):

Full Text:

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).