Cases

Amount of the foreign$-$earned income exclusion

Sam, a U$.$S$.$ citizen, is an assistant to the ambassador to Spain. Sam lives and works in Spain. His salary of $$90,000$ is paid by the U$.$S$.$ government.

Jim, a U$.$S$.$ citizen, owns an unincorporated oil drilling company that operates in Argentina, where he resides. The business is heavily dependent on equipment owned by Jim. His profit for the year totaled $$100,000.$

Ken, a U$.$S$.$ citizen, works for a large Japanese corporation. Ken is employed in the United States, but must travel to Japan several times each year. During the current year, he spent sixty days in Japan. This is typical of most years. His salary is $$95,000.$