Tim was recently called into the partners office and offered a two-year assignment in his public accounting firms Shanghai office. Realizing that Tim will face incremental expenses while in Shanghai, such as foreign income taxes and rent, the firm willtry to make him whole from a financial perspective by increasing his salary to help offset the expenses he will incur while living overseas. If Tim takes the assignment, he willlikely rent his personal residence and sell several major tangible assets such as his personal automobile. Identify the relevant tax issues.