Americans Overseas in High-Cost Areas May Get Tax Relief

The U. S. Treasury recently announced that they would allow a greater amount of housing costs to be tax-deductible in certain high-cost locales in accordance with provisions of the 2005 Tax Increase Protection and Reconciliation Act. While the act generally limits deductible housing costs to $11,536; it is permissable under the law to raise this cap for specific high-cost cities. The Treasury will provide relief to over 40 cities and areas; Hong Kong got the greatest increase to over $100,000 while London, England and Caracas, Venezuela were also raised to over $50,000.