Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 06-14-2012, 01:43 PM
Junior Member
 
Join Date: Jun 2012
Posts: 9
A simple question about form 2555-EZ and Bona Fide Residence test

One of the criteria for passing the Bona Fide Residence Test is:
A U.S. citizen who is a resident of a foreign country, or countries, for an uninterrupted period that includes an entire tax year (January 1–December 31).

So just to be completely clear on this, if I've been living in a country since 1984 and moved to the US in September 2011. When filing the 2555-EZ for 2011 would I pass the above test, even though I was not a resident in the foreign country throughout the whole year of 2011?

Thanks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 06-14-2012, 06:19 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“One of the criteria for passing the Bona Fide Residence Test is:A U.S. citizen who is a resident of a foreign country, or countries, for an uninterrupted period that includes an entire tax year (January 1–December 31).”--->Correct; this means , for example, to qualify as a BFRT, you must be in a foreign country at least on Dec 31 of a certain calendar year, NOT on Jan 1 of a certain calendar year.
“So just to be completely clear on this, if I've been living in a country since 1984 and moved to the US in September 2011. When filing the 2555-EZ for 2011 would I pass the above test, even though I was not a resident in the foreign country throughout the whole year of 2011?”----> You must reaffirm your status each year for FEIE deduction(juat like PPT). Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you will qualify as a bona fide resident for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. You could qualify as a bona fide resident for an entire tax year plus parts of 1 or 2 other tax year;for example, assume that you were a bona fide resident of UK from March 1, 2006, through September 14, 2008(as you returned to US after Sep 14 2008).Then, on September 15, 2008, you returned to the US. Since you were a bona fide resident of a foreign country for all of 2007(from March 1 2006-Feb 28 2007), as described above, you also qualify as a bona fide resident from March 1, 2006, through the end of 2006 and from January 1, 2008, through September 14, 2008 just before your returning to US. After Sep 14, 2008, you are NO longer a BFR of a foreign country.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 06-14-2012, 06:29 PM
Junior Member
 
Join Date: Jun 2012
Posts: 9
Quote:
Originally Posted by Wnhough View Post
for example, assume that you were a bona fide resident of UK from March 1, 2006, through September 14, 2008(as you returned to US after Sep 14 2008).Then, on September 15, 2008, you returned to the US. Since you were a bona fide resident of a foreign country for all of 2007(from March 1 2006-Feb 28 2007), as described above, you also qualify as a bona fide resident from March 1, 2006, through the end of 2006 and from January 1, 2008, through September 14, 2008 just before your returning to US. After Sep 14, 2008, you are NO longer a BFR of a foreign country.
Thanks!
So if I take your example above - if I were to fill out a form 2555-EZ form for the year 2008 - would the answer to question 1a. (Were you a bona fide resident of a foreign country or countries for a period that includes an entire tax year?) then be - NO?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 06-14-2012, 06:39 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
So if I take your example above - if I were to fill out a form 2555-EZ form for the year 2008 - would the answer to question 1a. (Were you a bona fide resident of a foreign country or countries for a period that includes an entire tax year?) then be - NO?”--->You were a BFR(as IO assuem that yu passed BERT in a foreign country) from 1984-Sep 2011, then yes. You were a BFR in a foreign country in 2008(I mean from 2008-Sep 2011).So, you can be a BFR on your 2008 US return.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Self employed income - can I use form 2555 to claim foreign earned income deduction? americanexpat Limited Liability Company 1 06-20-2011 09:24 AM
Can a nonresident alien take the foreign earned income exclusion if that person meets the bona fide resident test or physical presence test? TaxGuru Income 0 02-27-2011 10:33 PM
NJ taxes on simple IRA mdriver IRA/Sep 1 02-23-2011 12:30 PM
New Form Aids Processing of Mortgage Applications and Ordering Tax Transcripts Simple Samatg General 0 10-23-2009 05:22 PM
How are beneficiaries of a Simple Trust Taxed? pinky Trusts and Gift Tax Returns 0 05-22-2008 12:25 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.