- 76 -
taxable year in excess of amounts that the individual elected to
exclude from gross income under section 911(a)(2) or the annual
exclusion amount provided in section 911(b)(2)(D).29 Sec.
1.911-3(d)(2), Income Tax Regs. The maximum exclusion from
foreign earned income in 1999 was $74,000. Sec. 911(b)(2)(D)(i).
If a taxpayer qualifies for the section 911(a)(1) exclusion
for only a portion of the year, the annual exclusion amount under
section 911(b)(2)(D) is prorated, and the maximum exclusion amount
is the annual exclusion amount for the year, multiplied by a
fraction whose numerator is the number of qualifying days in the
taxable year and whose denominator is the number of days in the
year. Sec. 1.911-3(d)(2), Income Tax Regs. A qualifying day is a
day on which the taxpayer was a qualified individual under section
911(d)(1). Sec. 1.911-3(d)(3), Income Tax Regs.
Petitioner had 159 qualifying days in 1999. Thus
petitioner’s maximum exclusion from foreign earned income for 1999
is $32,236 (159 (qualifying days) divided by 365 (days in taxable
year) multiplied by $74,000 (annual exclusion amount for 1999)).
29 Petitioner did not make a sec. 911(a)(2) election.
Page: Previous 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Next
Last modified: March 27, 2008