I used to think I understood the Physical Presence Test, but now I'm not so sure. Consider this scenario:
A taxpayer begins an indefinite assignment to a foreign country on January 1, 2013. He has to return to the US for the last week of May 2013. He also makes an extended trip in the autumn in which there are a full five weeks in which...
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Foreign Earned Income Exclusion - Physical Presence Test
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A multinational client.
A client of mine is owner, officer, and sole employee of an S-Corp. His business involves working with clients both in the US and in Europe. He typically spends 6-7 weeks of each year in the US (usually broken between two trips) and the rest of the time in Europe. While in the US, he lives in a house he owns in California and uses a home office there.... -
S-Corp health insurance and foreign earned income exclusion REVISITED
I am thinking that in my earlier post on this subject I may have been asking the wrong question. Payments by an S-Corp for an owner/officer's medical insurance are reported as wages on the W2, but they are not subject to FICA and Medicare. My new question is: are these amounts considered earned income for the foreign earned income exclusion? I can't... -
S-Corp Health Insurance & Foreign Earned Income Exclusion
An owner/officer of an S-corp is permanently stationed abroad and wants to claim the foreign earned income exclusion on his salary. The corporation pays for his medical insurance and adds the payment to his taxable wages. He then reports an adjustment for self-employed medical insurance. I presume this would be considered a deduction directly related...