1. Short title This Act may be cited as the Tax Fairness for Americans Abroad Act of 2018 . 2. Taxation of nonresident citizens (a) In general The Internal Revenue Code of 1986 is amended by inserting after section 911 the following new section: 911A. Alternative for nonresident citizens of the United States living abroad (a) Exclusion of foreign income from gross income In the case of a qualified nonresident citizen, there shall be excluded from the gross income of such individual, and exempt from taxation under this subtitle, for any taxable year— (1) the foreign earned income of such individual, and (2) the foreign unearned income of such individual. (b) Definitions For purposes of this section— (1) In general Unless otherwise provided, terms used in this section have the same meaning given such terms in section 911. (2) Qualified nonresident citizen The term qualified nonresident citizen means, with respect to a taxable year, a nonresident citizen who— (A) has not made the election described in section 911 for such taxable year, and (B) makes an election under this paragraph. (3) Foreign earned income The term foreign earned income has, with respect to a taxable year, the meaning given such term in section 911(b)— (A) without regard to paragraph (2) thereof, and (B) if during the taxable year were substituted in paragraph (1)(A) for during the period described in subparagraph (A) or (B) of subsection (d)(1), whichever is applicable . (4) Foreign unearned income (A) In general The term foreign unearned income means income other than foreign earned income that is sourced outside the United States. (B) Exception The term foreign unearned income shall only include income from the sale of personal property to the extent such income is attributable to periods during which the individual was a qualified nonresident citizen. (c) Exclusion of gain during time as qualified nonresident citizen There shall be excluded from gross income of an individual any foreign unearned income from the sale of personal property to