if they reside with him
(3) Housing expenses (A) In general The term “housing expenses” means the reasonable expenses paid or incurred during the taxable year by or on behalf of an individual for housing for the individual (and, if they reside with him, for his spouse and dependents) in a foreign country. The term— (i) includes expenses attributable to the housing (such as utilities and insurance), but (ii) does not include interest and taxes of the kind deductible under section 163 or 164 or any amount allowable as a deduction under section 216(a). Housing expenses shall not be treated as reasonable to the extent such expenses are lavish or extravagant under the circumstances. (B) Second foreign household (i) In general Except as provided in clause (ii), only housing expenses incurred with respect to that abode which bears the closest relationship to the tax home of the individual shall be taken into account under paragraph (1). (ii) Separate household for spouse and dependents If an individual maintains a separate abode outside the United States for his spouse and dependents and they do not reside with him because of living conditions which are dangerous, unhealthful, or otherwise adverse, then— (I) the words “if they reside with him” in subparagraph (A) shall be disregarded, and (II) the housing expenses incurred with respect to such abode shall be taken into account under paragraph (1).