aclark79, IRS tax exemption cleared up just a little more
The more I research the issue the more I see how easy it's going to be to get the tax exclusion. The IRS rules say you do it by completing one of these two ways and it doesn't have to be both. One way is called the Physical Presence Test which is basically staying out of the country for 330 days out of a 12 month period. It doesn't have to be in a row, you can return to the USA for a few days, and there are other little issues to watch out for.
The other way is called the Bona Fide Residence Test which is establishing a legal residence outside of the USA during at least one entire tax year, not that you have to stay out of the states for that tax year. It even gives examples and says you can come back to the USA for short trips :
During the period of bona fide residence in a foreign country, you can leave the country for brief or temporary trips back to the United States or elsewhere for vacation or business. To keep your status as a bona fide resident of a foreign country, you must have a clear intention of returning from such trips, without unreasonable delay, to your foreign residence or to a new bona fide residence in another foreign country.
Of course don't take my word for it I'm just researching the issue since there is so much bad information out there but the more I talk to pilots who are actually doing it the more intriguing it makes it for me . I'm not a tax specialist so I'll be talking with experts tomorrow so going over to UAE is getting better by the minute.
To all the negative posters, I appreciate the comments because it keeps us all with our eyes open but also remember everybody does it for their own reasons and not everybody does it exclusively for the tax free money. My main reasons have nothing to do with money so just be happy with your choices because up to now I'm happy with mine.