IRS Highlights New Business Tax Account Features, FS-2024-27
The IRS announced that it is continuing to expand the features within Business Tax Account (BTA), an online self-service tool […]
Read MoreKPMG TaxNewsFlash – United States
March 20, 2024
The IRS today released Notice 2024-31 [PDF 156 KB] providing the adjustments to the limitation on housing expenses, under section 911, for specific locations for 2024.
The adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States—thus, providing an increased amount that a qualified individual can elect to exclude from gross income as a housing cost amount for purposes of section 911.
Under a general limitation, a qualified individual whose entire tax year is within the applicable period is limited to maximum housing expenses of $37,950 ($126,500 x .30) for 2024 to the extent they exceed a base amount of $20,240 ($126,500 x .16). However, the IRS has authority to issue guidance to adjust the $37,950 maximum amount in relation to geographic differences in housing cost amounts relative to housing costs in the United States.
Notice 2024-31 includes a table with the adjusted limitations on housing expenses for certain foreign locations (in lieu of the otherwise applicable limitation of $37,950) for 2024.
If the amount provided is more than the amount that was allowed for 2023, a taxpayer can elect to claim the 2024 limitation in his or her 2023 income tax return. If the 2023 return has already been filed, it can be amended to claim the higher limitation amount.
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