@davidchl , my suggested method also does the same thing because the expenses ( for the foreign source) income stream is included on Schedule-C -- thus creating a net income. It is also included on your Foreign gross income eligible for FEIE. The unexcluded portion ( that foreign income above the max allowed for the year ) is subject to US tax.
So I see no difference between my suggested path and your consultant ( Bright Tax ).
I rest my case
