Home exclusion with Bona Fide Residence Elsewhere

Client (nice guy - not pushy - will listen to me) requests the sale of main home exclusion on his "house back in the 'States" but we have been filing 2555 under the bona fide residence test for many years (more than 5).

He is a bona fide resident of a foreign country and he only comes back to visit - keeping half of his house to stay in and renting out the other half.

I told him I wasn't comfortable with that as it is not his primary residence.

Any reference I can show him and to make myself more comfortable with taking a position that generates so much tax for him?

Can't find anything.

You've determined his principal residence is overseas and he doesn't meet one of the exceptions in section 121? Just send him a copy of section 121.

Does it matter at all if the residence country will tax the gain and give credit for the US tax?

Any reference I can show him and to make myself more comfortable with taking a position that generates so much tax for him?

Give him a copy of Reg 1.121-1(a) and (b).
https://www.law.cornell.edu/cfr/text/26/1.121-1

That was a good read - but I hesitate to send him that because it lists things in the "relevant factors" that both help his case and hurt his case.

The problem I have with taking a position that supports the exclusion is that, in my opinion, "bona fide" (or "good faith") residence means that you "live there". You might have plans to return to your domicile one day, but for now, you live there.

Also, according to the IRS:

To see if you meet the test of bona fide residence in a foreign country, you must find out if you have established such a residence in a foreign country.

Can a taxpayer be a good faith resident of a foreign country and also show his primary residence somewhere else?

Can a taxpayer be a good faith resident of a foreign country and also show his primary residence somewhere else?

Take a read through Treas Reg §1.121-1

Also, according to the IRS:

To see if you meet the test of bona fide residence in a foreign country, you must find out if you have established such a residence in a foreign country.

You established this in your original post. You have also determined from 121 that his US residence is not his principal residence. You also said he is not pushy and will listen to you. Just hand him the code section and be done with it.