92 STAT. 3102
PUBLIC LAW 95-615—NOV. 8, 1978
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" (2) H O U S I N G EXPENSES.—
" (A) IN GENERAL.—For purposes of paragraph (1), the term 'nousing expenses' means the reasonable expenses paid or incurred during the taxable year by or on behalf of the individual for housing for the individual (and, if they reside with him, for his spouse and dependents) in a foreign country. Such term— " (i) except as provided in clause ( i i), includes expenses attributable to the housing (such as utilities and insurance), and " ( i i) does not include interest and taxes of the kind deductible under section 163 or 164 or any amount allowable as a deduction under section 2 1 6 (a).
26 USC 163, 164,216.
"(B)
PORTION
WHICH
I S LAVISH
OR EXTRAVAGANT NOT
ALLOWED.—For purposes of subparagraph (A), housing expenses shall not be treated as reasonable to the extent such expenses a r e lavish or extravagant under the circumstances. "(3)
BASE
HOUSING A M O U N T. — For
purposes
of
paragraph
(1)" (A) IN GENERAL.—The term 'base housing amount' means 20 percent of the excess of— " (i) the individual's earned income (reduced by the deductions properly allocable to or chargeable against such earned income (other than the deduction allowed by this section)), over " ( i i) the sum of— " (I) the housing expenses taken into account under paragraph (1)(A) of this subsection, " ( II) the qualified cost-of-living differential, " ( III) the qualified school expenses, " ( IV) the qualified home leave travel expenses, and " (V) the qualified hardship area deduction. " (B) BASE HOUSING AMOUNT TO BE ZERO I N CERTAIN CASES.—
If, because of adverse living conditions, the individual maintains a household for his spouse and dependents at a foreign place other than his tax home which is in addition to the household he maintains as his tax home, and if his tax home is in a h a r d s h i p area as defined in subsection (h), the base housing amount for the household maintained at his tax home shall be zero,
I t
" (4) PERIODS TAKEN INTO ACCOUNT.—
.;. =
26 USC 119.
" (A) IN GENERAL.—The expenses taken into account under this subsection shall be only those which are attributable to housing during periods for which— " (i) the individual's tax home is in a foreign country, and " ( i i) except as provided in subsection (i)(1)(B) (iii), the value of the individual's housing is not excluded under section 119. " (B) DETERMINATION o r BASE HOUSING AMOUNT.—The base
housing amount shall be determined for the periods referred to in subparagraph (A) (as modified by subsection (i)(l) (B)(iii)). " (5) O N L Y ONE HOUSE PER PERIOD.—If, b u t for t h i s paragraph,
housing expenses for any individual would be taken into account under paragraph (2) of subsection (b) with respect to more than
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