The 2018 form 1116 for Foreign Tax Credit has two new categories / baskets. One for Section 951A income and one for Foreign Branch income.
I'm trying to decide if my spouse's self employment income from a home selling business (less than $300 profit for the year) counts as a foreign branch? I have always included it in the general category.
The instructions aren't particularly helpful. This is all they have to say about it: "Foreign branch income consists of the business profits of U.S. persons that are attributable to one or more qualified business units (QBUs) in one or more foreign countries. Foreign branch income doesn’t include any passivecategory income. See Pub. 514 for further information."
But publication 514 for 2018 isn't available yet!
Any thoughts?
