I have a client 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

[Dak2019]

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 ?

[itonewbie · Accepted solution]

Yes but would probably be better off using PPT if he qualifies.

[Dak2019]

Can you explain ? The PPT

[itonewbie]

Reading this would be a good start: https://www.irs.gov/forms-pubs/about-publication-54

[rbynaker]

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).

[itonewbie]

@rbynakerThat's exactly the reason.