"I am currently residing and working in Malaysia . . . . I started
working and living here at the start of Feb. '08 . . . I intend to
work/live here through early December"

"[S]ince my place of business (and my residence/abode) is in Malaysia,
my tax home is there, until I return to the USA . . . "

I agree that your tax home is in Malaysia until December. I don't
necessarily agree that your tax home is in Malaysia until you return
to the U.S. If you leave your Malaysian job in December and aren't
working at all, you likely don't have a tax home (principal place of
business).

To be frank, I am not sure. I would need to look into the rules of
tax home further, as well as get a better understanding of what your
specific facts are. At a minimum, however, I think you have some
risk.

Andrew Mitchel, Esq.
Essex, Connecticut
http://www.andrewmitchel.com

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On Oct 8, 9:41*am, JamesAndCourtney.bo...[at]gmail.com wrote:
- quote -

Based on the facts you presented, you have established your tax home
in Malaysia. As long as you spend 330 24 hour days on foreign soil for
any reason during the year, you meet the physical presence test.
Therefore, as long as you don't establish an abode in the US during
the 330 day period, your tax home remains Malaysia and you would be
eligible for the exclusion.

--
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- quote -

Good point. But since my tax home is in Malaysia (I won't be returning
to the USA or its territories to live or work until after the full 330
day period), that should not be an issue in this case, right?

- quote -

I agree, but since my place of business (and my residence/abode) is in
Malaysia, my tax home is there, until I return to the USA and either
(a) begin living there as my primary "abode" location, or (b) begin
working there as my "primary place of business". Since this would
presumably happen at some time after the trip to Mexico (and thus
after the end of the 330 day period) then this should be a non-issue,
right?

Thanks again! This stuff is complex...

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Oct 6, 12:51*pm, JamesAndCourtney.bo...[at]gmail.com wrote:
- quote -

Treas. Reg. § 1.911-2(a) provides that "[a]n individual is a qualified
individual if . . . the individual's tax home is in a foreign country
or countries throughout . . . the period of bona fide residence . . .
or the 330 full days of presence . . . " Thus, unfortunately, if you
do not have a tax home outside the U.S. during the full 330 period,
you will not qualify.

- quote -

I don't think that the trip to Mexico helps if you do not have a tax
home outside the U.S. during the 12 month period.

Andrew Mitchel, Esq.
Essex, Connecticut
http://www.andrewmitchel.com

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Hello all,

I am currently residing and working in Malaysia, and am confused about
a detail of the Foreign Earned Income Exclusion: Is a minimum 12-month
period actually necessary for the Tax Home requirement?
I started working and living here at the start of Feb. '08 and had
every intention and plan of staying here 2-5 years on assignment (with
a Malaysian Corporation that I partially control), but circumstances
are cutting my foreign stay short. However, I intend to work/live here
through early December, and then complete my Physical Presence Test
330 day requirement via a trip (either business or pleasure, or a mix)
to Mexico from December to January. (I will return to the USA BEFORE
February '09.)

As I read Publication 54 and Revenue Ruling 93-86, since my intent was
to work in this foreign country for well more than 1 year, the fact
that my assignment is now being cut short of 1 year is irrelevant. My
intent can be seen from the planning I did up front, from the fact
that we signed a 2-year condo lease in Malaysia, that I brought my
wife and child here with me, that we bought rather than renting a car
here, that we were active in local organizations, etc. It seems that
as long as I meet the 330 day physical presence test (in Malaysia plus
Mexico in this case), I will qualify for the FEIE.

Is this correct? Does the fact that I'm taking a trip (which may be
all or partially vacation) to a different country (other than the one
I've established as my tax home) at the tail-end of this 330-day
Physical Presence period matter or hurt my case at all?

Thank you!

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >