Joseph D. Specking, et al. - Page 28




                                       - 28 -                                         
          section 931 for the years in issue, then that compensation can be           
          excluded under section 911.                                                 
               A.  In General                                                         
               Section 911(a) provides in part that a “qualified                      
          individual” may elect to exclude from gross income his or her               
          “foreign earned income”.  Section 911(b)(2) limits the amount of            
          the exclusion for foreign earned income to $70,000.                         
               Section 911(b)(1)(A) defines the term “foreign earned                  
          income” to mean, in general, “the amount received by such                   
          individual from sources within a foreign country or countries               
          which constitute earned income attributable to services performed           
          by such individual” during the period set forth in section                  
          911(d)(1).  Section 911(b)(1)(B) excludes from foreign earned               
          income certain amounts not relevant to this case.                           
               Section 911(d)(1) defines the term “qualified individual”              
          for purposes of section 911 to mean                                         
               an individual whose tax home is in a foreign country                   
               and who is--                                                           
                    (A) a citizen of the United States and                            
                    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                         
                    (B) a citizen or resident of the United                           
                    States and 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.                                                   









Page:  Previous  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  Next

Last modified: May 25, 2011