Paul, a foreign individual, has been seconded to work in Singapore for a period of 600 days. His employer has granted him various options listed below. Which option would be most beneficial if his personal income tax rate back home is 30%, his country does not tax worldwide income, and he is paid SGD40,000 for every 60 days of work? To work for 600 continuous days over 3 calendar years with effect from 3rd September. To work for 600 continuous days over 3 calendar years with effect from 2hd December. To work for 600 continuous days over 3

Paul, a foreign individual, has been seconded to work in Singapore for a period of 600 days. His employer has granted him various options listed below. Which option would be most beneficial if his personal income tax rate back home is 30%, his country does not tax worldwide income, and he is paid SGD40,000 for every 60 days of work? To work for 600 continuous days over 3 calendar years with effect from 3rd September. To work for 600 continuous days over 3 calendar years with effect from 2hd December. To work for 600 continuous days over 3

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 33P

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Fred currently earns $9,000 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 $10,000 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $105,900. a) 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 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?
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…
Fred currently earns $9,000 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 $10,000 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $105,900. 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. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)
Fred currently earns $10,400 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 $11,400 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $112,000. -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?
Fred currently earns $9,100 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 $10,100 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $108,700. 1. If Fred's employer also provides him free housing abroad (cost of $20,100), how much of the $20,100 is excludable from Fred's income? 2. 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? 3. 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. 4. If Fred's…
Fred currently earns $10,400 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 $11,400 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $112,000. - 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 in July 1 of next year?
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Carmen SanDiego, a U.S. citizen, is employed by General Motors Corporation, a U.S. corporation. On April 1, 2020, GM relocated Carmen to its Brazilian operations for the remainder of 2020. Carmen was paid a salary of $132,000 and was employed on a 5-day-week basis. As part of her compensation package for moving to Brazil, Carmen also received a housing allowance of $28,000. Carmen’s salary was earned ratably over the 12-month period. During 2020 Carmen worked 260 days, 195 of which were in Brazil and 65 of which were in Michigan.How much of Carmen’s total compensation is treated as foreign source income for 2020? (Do not round intermediate calculations.)
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