Instructions For Form 2555 - 2017 (Page 4 of 11) in pdf

Separate foreign households. If you

Limit on Housing Expenses

and your spouse lived in separate foreign

Keep for Your Records

Worksheet—Line 29b

households, you each can claim qualified

expenses for your own household only if:

Note. If the location in which you incurred housing expenses isn't listed in the table at the

Your tax homes weren't within a

end of the instructions, and the number of days in your qualifying period that fall within the

reasonable commuting distance of each

2017 tax year is 365, DO NOT complete this worksheet. Instead, enter $30,630 on line 29b.

other, and

Each spouse's household wasn't within

1. Enter the number of days in your qualifying period that fall within

a reasonable commuting distance of the

the 2017 tax year (see the instructions for line 31) . . . . . . . . . . . .

other spouse's tax home.

Otherwise, only one spouse can claim

2. Did you enter 365 on line 1?

his or her housing exclusion or deduction.

No. If the amount on line 1 is less than 365, skip line 2 and go

This is true even if you and your spouse

file separate returns.

to line 3.

See Pub. 54 for additional information.

Yes. Locate the amount under the column Limit on Housing

Line 29a. Enter the city or other location

Expenses (full year) from the table at the end of the instructions

(if applicable) and the country where you

for the location in which you incurred housing expenses. This is

incurred foreign housing expenses during

your limit on housing expenses. Enter the amount here and

the tax year only if your location is listed in

on line 29b. Also, see Election to apply higher limit on housing

the table at the end of the instructions;

expenses, later.

otherwise, leave this line blank.

STOP

Line 29b. Your housing expenses may

Do not complete the rest of this worksheet . . . . . . . . . .

not exceed a certain limit. The limit on

3. Enter the amount under the column Limit on Housing Expenses

housing expenses varies depending upon

(daily) from the table at the end of the instructions for the location

the location in which you incur housing

in which you incurred housing expenses. If the location isn't listed

expenses. In 2017, for most locations, this

in the table, enter $83.92. Also, see Election to apply higher limit

limit is $30,630 (30 percent of $102,100) if

on housing expenses, later. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

your qualifying period includes all of 2017

(or $83.92 per day if the number of days in

4. Multiply line 1 by line 3. This is your limit on housing expenses.

your qualifying period that fall within your

Enter the result here and on line 29b . . . . . . . . . . . . . . . . . . . . . .

2017 tax year is less than 365).

The table at the end of the instructions

lists the housing expense limits based on

expenses of a second foreign household

Second foreign household. If you

geographic differences in foreign housing

(defined later). Housing expenses are

maintained a separate foreign household

costs relative to housing costs in the

considered reasonable to the extent they

for your spouse and dependents at a

United States. If the location in which you

aren't lavish or extravagant under the

place other than your tax home because

incurred housing expenses is listed in the

circumstances.

the living conditions at your tax home were

table, or the number of days in your

Housing expenses include rent, utilities

dangerous, unhealthful, or otherwise

qualifying period that fall within the 2017

(other than telephone charges), real and

adverse, you can include the expenses of

tax year is less than 365, use the

Limit on

personal property insurance,

the second household on line 28.

Housing Expenses

Worksheet, on this

nonrefundable fees paid to obtain a lease,

page, to figure the amount to enter on

Married couples. The following rules

rental of furniture and accessories,

line 29b. If the location in which you

apply if both you and your spouse qualify

residential parking, and household

incurred housing expenses is not listed in

for the tax benefits of Form 2555.

repairs. You can also include the fair rental

the table, and the number of days in your

value of housing provided by, or on behalf

Same foreign household. If you and

qualifying period is 365, enter $30,630 on

of, your employer if you haven't excluded it

your spouse lived in the same foreign

line 29b.

on line 25.

household and file a joint return, you must

Example. For 2017, because your

figure your housing amounts (line 33)

Don't include deductible interest and

location is not listed in the table at the end

jointly. If you file separate returns, only

taxes, any amount deductible by a

of the instructions, your limit on housing

one spouse can claim the housing

tenant-stockholder in connection with

expenses is $83.92 per day. If you file a

exclusion or deduction.

cooperative housing, the cost of buying or

calendar year return and your qualifying

improving a house, principal payments on

In figuring your housing amount jointly,

period is January 1, 2017, to October 3,

a mortgage, or depreciation on the house.

either spouse (but not both) can claim the

2017 (276 days), you would enter $23,162

Also, don't include the cost of domestic

housing exclusion or housing deduction.

on line 29b ($83.92 multiplied by 276

labor, pay television, or the cost of buying

However, if you and your spouse have

days).

furniture or accessories.

different periods of residence or presence,

and the one with the shorter period of

Election to apply higher limit on

Include expenses for housing only

residence or presence claims the

housing expenses. For 2016 you could

during periods for which:

elect to apply the 2017 limits on housing

exclusion or deduction, you can claim as

The value of your housing isn't

expenses as discussed in section 4 of

housing expenses only the expenses for

excluded from gross income under section

Notice 2017-21 available at

IRS.gov/irb/

that shorter period. The spouse claiming

119 (unless you maintained a second

the exclusion or deduction can aggregate

2017-13_IRB/ar05.html.

foreign household as defined later), and

the housing expenses of both spouses,

You meet the tax home test and either

The IRS and Treasury Department

subject to the limit on housing expenses

the bona fide residence or physical

anticipate that you will also be allowed to

(line 29b), and subtract his or her base

presence test.

make an election to apply the 2018 limits

housing amount.

to figure your 2017 limit on housing

Instructions for Form 2555 (2017)

-4-

Instructions For Form 2555 - 2017 Page 4

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