# Do I have foreign Tax Home?



## Inthailand (Feb 11, 2012)

Hi,

I am in Thailand doing research for my job and will be over 330 days this filing season (with extensions).

I pass physical presence, but wondering if I can claim foreign tax home, specifically as indefinitely employed:

"if you expect to be overseas over one year, it is indefinite" (approx. wording)

If I expect to be overseas one year and one week, then is that kosher, or cutting it too close? If too close, how long does it need to be?

I want to know specifically about this one aspect of the rule. I know it probably winds up as a preponderance of considerations, but to spare you all my details I was wondering if anyone can comment just in respect to this one rule.

Secondarily, I was wondering how I can prove what my expectations were, however I will definitely be overseas at least one year and one week.

I think I have other bases covered: my family is with me here almost the whole time, my children go to private school here, I have rented a car and living quarters. I'll spare you all the details. I am really here and not living in the U.S. at all and did not even visit.

Please help me! Hope to be back online soon but please excuse any lack of response the next few days from me.

all the best,

Al


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## Bevdeforges (Nov 16, 2007)

As long as you're living in Thailand for a full year, I wouldn't cut it too much finer than that. The big difference between the physical presence test and the bona fide resident test often comes down to whether your "full 12 month period" includes a calendar year or not. 
Cheers,
Bev


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## Inthailand (Feb 11, 2012)

Thanks!

Not sure how to interpret your message. Do you think 1 one year and one week is too short?

I am qualifying via the physical presence test and will not be in Thailand one calendar year but spread out over two calendar years, last and 2012 now, and continuous.

thanks if you can clarify that would be great. anyone know if that is too short of a time?

I already understand what the physical presence test is.

thanks alot!


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## Bevdeforges (Nov 16, 2007)

It's not too short a period. But, given that your one year in Thailand is spread out over two calendar years, you'll have to wait to file until you have reached the one year point (one year and one week is perfect) before you can file and claim the FEIE.
Cheers,
Bev


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## Inthailand (Feb 11, 2012)

Thanks Bev!

I seem to get the info that I only need 330 days to file, which I will have this tax season with extensions, and the info also states that it is ok to extend filing for the purposes of qualifying via physical presence. But I can file after I return to U.S. one year, one week after leaving, and still make it into the extensions deadlines.

My question is, actually, concerning the definition of a "tax home" which is a separate issue from physical presence (330 days) or bona fide residence, for that matter (calendar year). In other words, although you have physical presence or bona fide residence, that does not automatically mean you have a "tax home" which would qualify you for FEIE.

There are more conditions, one of which is that your work assignment is permanent or indefinite. Now here is where my question comes in.

The definition of indefinite is that you expect to be away more than one year and it winds up being more than one year. That is the sole definition of indefinite I can find.

With that in mind, I expect to be out 1 year and 1 week, and will be. After which, with extensions, I will file. Technically that seems to qualify me.

I guess my question is whether, technically, according to letter of the law, is that enough to allow me to file? Is one week over 1 year too close, or is it all cut and dry? I guess this is a question of how it goes down in practice, in the real world.

Luckily I have other aspects of my case that all line up as I said, family here, kids going to school, etc. So it seems it is just this one point that is my question.

I also have one more, about something else, but I better save it!

Again, thanks so much!


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## Bevdeforges (Nov 16, 2007)

If it says "over one year" then one year and one week works.

As for "tax home" - have you paid any taxes in Thailand? Frankly, I'd just claim Thailand as my tax home during that period of time - the determination of "tax home" is one of those "facts and circumstances" things which you can argue over forever without getting anything definitive. Your main points are that you lived and worked there, your family was living with you there - and you were there more than 183 days in a calendar year (which is the criteria most countries other than the US use). 
Cheers,
Bev


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