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Julie's total exclusion is $94,079. In her American expat tax return she also gets declare a personal exemption ($3,650) and standard deduction ($5,700). Thus, her taxable income is negative. She owes no U.S. duty.

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The auditor going using your books does not necessarily want transfer pricing as part of your a problem, but he has to choose a problem. It's his job, and he has to justify it, and the time he takes to accomplish.

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