Good information from the above two posters. Another alternative is to use the daily per diem rates for overseas travel as a deduction. A friend who works for an overseas company but is " based " in Los Angeles does this and it comes awefully close to the $80,000 deduction.
For those using the $80,000 deduction please write to your Congressman and Senators and ask them to keep the deduction. There was a move this year to repeal that provision and I fear it will happen again as Bush is running a massive deficit and will look to make money from an easy mark. As overseas residents we don't actually have a Congressman or Senators so for them to repeal the deduction isn't going to cost them a vote.
A good CPA for travel industry employees is in L.A.
www.pilotax.com or
www.mkappcpa.com
Typhoonpilot