Assuming that TurboTax will not handle both foreign income for the exclusion and the calculation for the home office deduction - I have not checked, but this seems possible - I would report the income as foreign income as Amy noted above, but adjust your net self-employment income by what would have been the home office deduction had your office been in the US.
Just remember that the same rules would apply no matter where you are. Document, document, document.
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