Declaring a foreign tax reduction - certain income re-sourced by treaty

[pk]

@RicN , 

1. A US person ( citizen/.GreenCard) is taxed on world income.

2. This person  has a tax home in a foreign country which also taxes the person on world income.

3. In such a case and only for US purposes, US sourced  passive income needs to be "resourced by treaty " to be eligible for foreign tax credit.  This assumes that there is a Tax Treaty in effect at the time ( for the tax year under consideration).

Does this answer your query?

Is there more I can do for you ?

[RicN]

Dear @pk ,

Thanks for the reply. Understood and completely agree.

My question was about the category to choose in Form 1116.  For instance, when one works abroad, the correct choice in Form 1116 is "d) General Category Income". I know that. But some cases are less clear about what the correct choice is in Form 1116. 

For the case of the original post, I was wondering if the correct choice in Form 1116 is 

“c) Passive category income”

or

“f) Certain income re-sourced by treaty.”

?

I have also put a post related to this and with more details in 

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/claiming-foreign-tax-credit-corr...

Any hints would be very welcome. Thank you.

[pk]

@RicN  I have answered your query on your other post.

Please add any questions/comments to that pos