### Question
How does Foreign Tax Credit define financial services income?


### Answer
Under *26 U.S.C. § 904*, **financial services income** is defined as:

> any income which is received or accrued by any person predominantly engaged in the active conduct of a banking, insurance, financing, or similar business, and which is—


(I) described in clause (ii), or


(II) passive income (determined without regard to subparagraph (B)(iii)(II))

#### Citation:
  - *26 U.S.C. § 904*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart A-Foreign Tax Credit**

