Notice 2014-29 - Housing expense limit adjustments for foreign locations for 2014 

April 14:  The IRS today released an advance copy of Notice 2014-29 providing the adjustments to the limitation on housing expenses, under section 911, for specific locations for 2014.

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 to elect to exclude from gross income as a housing cost amount for purposes of section 911.

Notice 2014-29 [PDF 143 KB] provides a table with the adjusted limitations on housing expenses for the foreign locations (in lieu of the otherwise applicable limitation of $29,760) for 2014.

Election to apply 2014 adjusted limitations to 2013

Today's notice is effective for tax years beginning on or after January 1, 2014.

For some locations, however, the limitation on housing expenses provided in today's notice may be higher than the limitation on housing expenses provided in the table of adjusted limitations for 2013 (in Notice 2013-31).

Notice 2014-29 provides that a qualified individual, incurring housing expenses in such a location during 2013, may elect to apply the 2014 adjusted housing limitations to the tax year beginning in 2013.

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