The nine categories of foreign source income defined by the Tax Reform Act of 1986 are referred to as:

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The nine categories of foreign source income defined by the Tax Reform Act of 1986 are referred to as FTC baskets. The acronym FTC refers to Foreign Tax Credit, which allows taxpayers to offset their U.S. tax liability with foreign taxes paid on foreign source income. The nine baskets include: passive category income, general category income, foreign oil and gas extraction income, income re-sourced by treaty, income not re-sourced by treaty, financial services income, shipping income, income related to international boycotts, and deemed paid credit.

The Nine Categories of Foreign Source Income Defined by the Tax