Dak2019
Level 3
05-01-2020
06:02 PM
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I have a client who have been earning foreign income in UAE since 12/05/2005 he permanently left UAE for the US 4/30/2019 does he still qualify for the bona fide residence test for 2019 tax return ?
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itonewbie
Level 15
05-01-2020
06:16 PM
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Yes but would probably be better off using PPT if he qualifies.
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Dak2019
Level 3
05-01-2020
06:19 PM
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Can you explain ? The PPT
itonewbie
Level 15
05-01-2020
06:24 PM
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Reading this would be a good start: https://www.irs.gov/forms-pubs/about-publication-54
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rbynaker
Level 13
05-01-2020
06:31 PM
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itonewbie is our foreign tax expert, so go with whatever he says. 🙂 I think Physical Presence Test (PPT) is probably better because of the rolling 365-day window. Assuming your client was not in the US for any period of time, that lets you choose a 365-day period that extends 35 days beyond the time they left UAE to still meet the 330-day test. That gets you a little more prorated exclusion cap (but you might not need it, depending on the amount of income).
