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Likewise, Mr. Favero does not qualify for the foreign earned
income exclusion. Section 911(a) provides that a qualified
individual may exclude from gross income a certain amount of his
foreign earned income. Sec. 911(b)(2)(A). A qualified
individual is an individual whose tax home is in a foreign
country and who is either: (1) A citizen of the United States
who establishes to the satisfaction of the Secretary that he has
been a bona fide resident of a foreign country or countries for
an uninterrupted period which includes an entire taxable year; or
(2) a citizen or resident of the United States who, during any
period of 12 consecutive months, is present in a foreign country
or countries during at least 330 full days in such period. Sec.
911(d)(1). An individual’s tax home for purposes of applying
section 911 is the same as an individual’s tax home for purposes
of section 162(a)(2), relating to traveling expenses while away
from home. Sec. 911(d)(3). An individual does not have a tax
home in a foreign country for any period for which his abode is
within the United States. Id. Petitioners have not provided any
evidence suggesting that Mr. Favero is a qualified individual or
that his wages during the years in issue constitute foreign
earned income. Petitioners, therefore, do not qualify for the
section 911(a) foreign earned income exclusion.
With respect to the Schedule C deduction petitioners claimed
on their 1995 return for Mrs. Favero’s “cottage industries”,
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Last modified: May 25, 2011