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e receved $12,000 of Social Seu should be lung can- from his gross injury he suf

ID: 2544289 • Letter: E

Question

e receved $12,000 of Social Seu should be lung can- from his gross injury he suffered in the year. E are as a result of his service in the amed forces. Is Aubrey correc? Esxplain. Partial list of Rev.Rul. 77-318, 1977-2 CB. 45. Reimes e. Comm., 2006-1 USTC 150,147, 97 AFTR 2d 2006-820, 436 F3d 344 (CA-2, 2006) Research Problem 5. Your client works for a defense contractor and was assigned to work on a military base in Australia. As a condition of his t, he was required to live in housing that was provided to military personnel. The housing pro- vided was a condominium located in a civilian neighborhood that was 20 miles from the military base where he performed his services. The employer paid over $6,000 of ployee was living there. Your client would like to know whether the value of the housing can be excluded from his gross income. He read an article that indicated that employees who are required to live in a "camp" in a foreign coun- try can exclude the cost of the housing from gross income. What is the result of your research? Use internet tax resources to address the following questions. Look for reliable web- sites and blogs of the IRS and other government agencies, media outlets, businesses, tax professionals, academics, think tanks, and political outlets. Research Problem 6. Employers often use the internet as a means of attracting appli- cations from potential employees. Locate an internet site offering employment does the opportunities, ideally one provided by a well-known corporation. How employer promote its fringe benefit and cafeteria plan packages? Compare and con- trast several such sites. Rrohlem 7. Qne income exclusion that some states allow that the federal

Explanation / Answer

As per IRS publication 593, to be quoted as below:

If as a condition of employment you are required to live in a camp in a foreign country that is provided by or for your employer, you can exclude the value of any meals and lodging furnished to you, your spouse, and your dependents. For this exclusion, a camp is lodging that is:

Thus, client can surely claim exclusion from income tax the amount paid by employer for the camp.