DocketNumber: Docket No. 7600-74.
Citation Numbers: 35 T.C.M. 731, 1976 Tax Ct. Memo LEXIS 243, 1976 T.C. Memo. 164
Filed Date: 5/24/1976
Status: Non-Precedential
Modified Date: 11/21/2020
MEMORANDUM OPINION
TANNENWALD,
Petitioners are husband and wife. They resided in Jerusalem, Israel, at the time their petition was filed. Their 1971 income tax return was filed with the office of the Internal Revenue Service in Philadelphia, Pennsylvania.
Petitioners are United States citizens and resided in the United States until August 30, 1971, when they left
Petitioners incurred expenses of $7,447.93 in connection with their move to Israel. On their return they reported all of their 1971 income, including amounts earned in Israel (amounting to $326.81), and claimed a moving expense deduction under section 217(a). *246 in Israel and the disallowance of the moving expenses.
Petitioners were bona fide residents of Israel for an uninterrupted period including the entire taxable year 1972. They were physically present in Israel for at least 510 days during the 18-month period beginning August 31, 1971.
In a recently decided case (
Petitioners seek to avoid the impact of
Petitioners also argue that the materials provided by respondent expressed the exclusion of amounts earned abroad from gross income under section 911 in permissive rather than mandatory terms. They claim, in effect, that they elected to include all of their income on their 1971 return and should, therefore, be allowed the section 217 deduction. *250 yet met the durational requirements of section 911(a).
*251
1. All statutory references are to the Internal Revenue Code of 1954, as amended and in effect for the year in issue.
Section 911(a) provides, in pertinent part:
SEC. 911. EARNED INCOME FROM SOURCES WITHOUT THE UNITED STATES.
(a) General Rule.--The following items shall not be included in gross income and shall be exempt from taxation under this subtitle:
(1) Bona fide resident of foreign country.--In the case of an individual citizen of the United States who establishes to the satisfaction of the Secretary or his delegate that he has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year, amounts received from sources without the United States (except amounts paid by the United States or any agency thereof) which constitute earned income attributable to services performed during such uninterrupted period. * * *
(2) Presence in foreign country for 17 months.--In the case of an individual citizen of the United States who during any period of 18 consecutive months is present in a foreign country or countries during at least 510 full days in such period, amounts received from sources without the United States (except amounts paid by the United States or any agency thereof) which constitute earned income attributable to services performed during such 18-month period. * * *
An individual shall not be allowed, as a deduction from his gross income, any deductions (other than those allowed by section 151, relating to personal exemptions) properly allocable to or chargeable against amounts excluded from gross income under this subsection.↩
2. SEC. 217. MOVING EXPENSES.
(a) Deduction Allowed -- There shall be allowed as a deduction moving expenses paid or incurred during the taxable year in connection with the commencement of work by the taxpayer as an employee or as a self-employed individual at a new principal place of work.↩
3. Cf.
4. We also note that since, under Sec. 7482(b)(1), an appeal in this case would lie to the Circuit Court of Appeals for the District of Columbia, we are bound by the decision of that Court in
5. The record shows that petitioners received Israel-source earned income of $3,394.99 during the taxable year 1972 and $6,338.34 during the period October 1, 1971 to March 31, 1973, but does not show whether petitioners excluded any such income under Sec. 911 in the later years. ↩
6. Cf.
Commissioner v. Sunnen , 68 S. Ct. 715 ( 1948 )
Clark v. Commissioner of Internal Revenue , 158 F.2d 851 ( 1946 )
United States v. W. H. Cocke , 399 F.2d 433 ( 1968 )
Jack E. Golsen and Sylvia H. Golsen v. Commissioner of ... , 445 F.2d 985 ( 1971 )
Of Course, Inc., (Formerly: The Isaac Hamburger & Sons ... , 499 F.2d 754 ( 1974 )
Dixon v. United States , 85 S. Ct. 1301 ( 1965 )
Jon F. And Constance M. Hartung v. Commissioner of Internal ... , 484 F.2d 953 ( 1973 )