Tax impact of rent stipend - personal & corporate

[formerexpat]

If an employee receives a rent stipend from a company, what is the tax impact to a) the employee and b) the company.

I received one before while living in the UK and do not see it reported as income on my tax returns, so I think I'm clear from the personal side [unless there is income parameters] but I'm wondering what the corporate tax impact of a rental stipend would be, if applicable.

Thanks, Expat

[mwcpa]

generally compensation of any form paid to an employee is taxable income....and generally the company would be allowed a deduction for such

In regards to foreign rental stipends....

see form 2555 for 2010.... foreign wages include... lines 19 though 26.....

also.... publication 54....

"In addition to the types of earned income listed, certain noncash income and allowances or reimbursements are considered earned income.

Noncash income. The fair market value of property or facilities provided to you by your employer in the form of lodging, meals, or use of a car is earned income.

Allowances or reimbursements. Earned income includes allowances or reimbursements you receive, such as the following amounts.


Cost-of-living allowances.

Overseas differential.

Family allowance.

Reimbursement for education or education allowance.

Home leave allowance.

Quarters allowance.

Reimbursement for moving or moving allowance (unless excluded from income as discussed later in Reimbursement of employee expenses under Earned and Unearned Income). "

but, there is always an exclusion for the individual for.....

"Foreign earned income does not include the following amounts.

The value of meals and lodging that you exclude from your income because the meals and lodging were furnished for the convenience of your employer."

[formerexpat]

Thanks - mw...I'll have to double check my returns a second time. I don't recall the rent allowance being included in my taxable income while overseas.