Fred currently earns $10,100 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 $11,100 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $112,000. Required: a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year? a-2. If Fred's employer also provides him free housing abroad (cost of $21,100), how much of the $21,100 is excludable from Fred's income? b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year? c-1. Suppose that Fred's employer offers Fred a permanent overseas assignment beginning on March 1 of next year. How much U.S. gross income will Fred report next year if he accepts the permanent assignment abroad? Assume that Fred will be abroad for 305 days out of 365 days next year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. c-2. If Fred's employer also provides him free housing abroad (cost of $16,550 next year), how much the $16,550 is excludable from Fred's income? Assume that Fred will be abroad for 305 days out of 365 days next year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
Fred currently earns $10,100 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 $11,100 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $112,000. Required: a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year? a-2. If Fred's employer also provides him free housing abroad (cost of $21,100), how much of the $21,100 is excludable from Fred's income? b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year? c-1. Suppose that Fred's employer offers Fred a permanent overseas assignment beginning on March 1 of next year. How much U.S. gross income will Fred report next year if he accepts the permanent assignment abroad? Assume that Fred will be abroad for 305 days out of 365 days next year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. c-2. If Fred's employer also provides him free housing abroad (cost of $16,550 next year), how much the $16,550 is excludable from Fred's income? Assume that Fred will be abroad for 305 days out of 365 days next year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 24P
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Question
Transcribed Image Text:Fred currently earns $10,100 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 $11,100 per month if he accepts the assignment. Assume that the maximum foreign-earned income
exclusion for next year is $112,000.
Required:
a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas
for the entire year?
a-2. If Fred's employer also provides him free housing abroad (cost of $21,100), how much of the $21,100 is excludable from Fred's
income?
b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much
U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year?
c-1. Suppose that Fred's employer offers Fred a permanent overseas assignment beginning on March 1 of next year. How much U.S.
gross income will Fred report next year if he accepts the permanent assignment abroad? Assume that Fred will be abroad for 305
days out of 365 days next year.
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
c-2. If Fred's employer also provides him free housing abroad (cost of $16,550 next year), how much of the $16,550 is excludable from
Fred's income? Assume that Fred will be abroad for 305 days out of 365 days next year.
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
Complete this question by entering your answers in the tabs below.
Required A1 Required A2 Required B Required C1 Required C2
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