John Black is a U.S. citizen and was a bona fide resident ofAmerican Samoa during all of 1999. He has to file Form 1040 becausehis gross income from sources outside the possessions ($8,000 ofdividends from U.S. corporations) is at least the total of hispersonal exemption and allowable standard deduction. (See FilingTax Returns, earlier.) Because he has to file Form 1040, hefills out Form 4563 to determine the amount of possession income hecan exclude. Line 1. John enters the date his bona fide residence began in AmericanSamoa, June 2, 1998. Because he is still a bona fide resident, hewrites "not ended" in the second blank space. Line 2. He checks the box labeled "Rented house or apartment" todescribe his type of living quarters in American Samoa. Lines 3a and 3b. He checks "No" on line 3a because no family members lived withhim. He leaves line 3b blank. Lines 4a and 4b. He checks "No" on line 4a because he did not maintain a homeoutside American Samoa. He leaves line 4b blank. Line 5. He enters the name and address of his employer, Samoa Products Co.It is a private Samoan corporation. Line 6. He enters the dates of his 2-week vacation to New Zealand fromNovember 11 to November 25. That was his only trip outside AmericanSamoa during the year. Line 7. He enters the $24,000 in wages he received from Samoa Products Co. Line 9. He received dividends of $100 from a CNMI corporation and $220 froma Samoan corporation. He enters the total of those amounts. He doesnot enter his dividends from U.S. corporations because they do notqualify for the possession exclusion. Line 15. Biarritz luxury hotelsJohn totals the amounts on lines 7 and 9 to get the amount he canexclude from his gross income in 1999. | 
