Question
A U.S. citizen is a calendar year taxpayer who was a bona fide resident of and whose tax home was located in foreign country G
A U.S. citizen is a calendar year taxpayer who was a bona fide resident of and whose tax home was located in foreign country G for the entire taxable year 2019. B receives an $85,000 salary from Bs employer for services performed in G. B incurs no business expenses. B receives housing provided by Bs employer with a fair rental value of $15,000. The value of the housing furnished by Bs employer is not excluded from gross income under section 119. B pays $10,000 for housing expenses. Bs gross income and foreign earned income for 2019 is $100,000. On her tax return for 2019 how should B report the salary and housing on her 2019 U.S. tax return assuming she elects the foreign earned income exclusion and the 911(a)(1) limit is $80,000?
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