Discussion Archives:Foreign Income Exclusion and residency

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Discussion Forum Index --> Advanced Tax Questions --> Foreign Income Exclusion and residency


Discussion Forum Index --> Tax Questions --> Foreign Income Exclusion and residency

Cheryl01906 (talk|edits) said:

31 March 2008
I have a US citizen who works as a consultant. He was asked to work in Abu Dhabi as a consultant/project manager on an oil well. He was hired by a UK company. He was present is tha Thankst country only 195 days during 2007 but is on call to go back at any point. The job isn't yet complete and he continues to fly to Venezuela, etc for purposes of this consulting job. My question is whether or not he can claim the foreign income exclusiion as a bone fide resident. Client expects to be called back in the next month. He did no other work in the US. Thanks.

Cheryl01906 (talk|edits) said:

31 March 2008
Just noticed typo in second line. Please ignore.

Smktax (talk|edits) said:

31 March 2008
Based on what you have described, it is unlikely that he can claim the foreign income exclusiion as a bone fide resident. He may not have had a tax home in a foreign country. The silver lining is that he can deduct travel away from home expenses.

Guya (talk|edits) said:

31 March 2008
He may have a foreign tax home in Venezuala but you'd need to find out...

Rbu-japan (talk|edits) said:

1 April 2008
It depends on his intention to move overseas, very much fact based. Unless his intention is indefinite, unlimited term, it is hard to prove otherwise. This becomes a short term assignment and you are not considered bona fide for the purposes of irc sec911 exclusion. However, if he is physically present overseas for a consecutive 330 days out of 365, you can still qualify for the exclusion notwithstanding the bona fide test.
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