[Code of Federal Regulations]
[Title 26, Volume 10]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.911-1]

[Page 8-9]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.911-1  Partial exclusion for earned income from sources within a foreign country and foreign housing costs.

    (a) In general. Section 911 provides that a qualified individual may 
elect to exclude the individual's foreign earned income and the housing 
cost amount from the individual's gross income for the taxable year. 
Foreign earned income is excludable to the extent of the applicable 
limitation for the taxable year. The housing cost amount for the taxable 
year is excludable to the extent attributable to employer provided 
amounts. If a portion of the housing cost amount for the taxable year is 
attributable to non-employer provided amounts, such amount may be 
deductible by the qualified individual subject to a limitation. The 
amounts excluded under section 911(a) and the amount deducted under 
section 911(c)(3)(A) for the taxable year shall not exceed the 
individual's foreign earned income for such taxable year. Foreign earned 
income must be earned during a period for which the individual qualifies 
to make an election under section 911(d)(1). A housing cost amount that 
would be deductible except for the application of this limitation may be 
carried over to the next taxable year and is deductible to the extent of 
the limitation for that year. Except as otherwise provided, Secs. 1.911-
1 through 1.911-7 apply to taxable years beginning after December 31, 
1981. These sections do not apply to any item of income, expense, 
deduction, or credit arising before January 1, 1982, even if such item 
is attributable to services performed after December 31, 1981.
    (b) Scope. Section 1.911-2 provides rules for determining whether an 
individual qualifies to make an election under section 911. Section 
1.911-3 provides rules for determining the amount of foreign earned 
income that is excludable under section 911(a)(1). Section 1.911-4 
provides rules for determining the housing cost amount and the portions 
excludable under section

[[Page 9]]

911(a)(2) or deductible under section 911(c)(3). Section 1.911-5 
provides special rules applicable to married couples. Section 1.911-6 
provides for the disallowance of deductions, exclusions, and credits 
attributable to amounts excluded under section 911. Section 1.911-7 
provides procedural rules for making or revoking an election under 
section 911. Section 1.911-8 provides a reference to rules applicable to 
taxable years beginning before January 1, 1982.

(Sec. 911 (95 Stat. 194; 26 U.S.C. 911) and sec. 7805 (68A Stat. 917; 26 
U.S.C. 7805) of the Internal Revenue Code of 1954)

[T.D. 8006, 50 FR 2964, Jan. 23, 1985]