# 26 U.S.C. § 905: Applicable rules

> Federal · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/usc_t26_s905

## Section

- **Citation:** 26 U.S.C. § 905
- **Heading:** Applicable rules
- **Jurisdiction:** Federal
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** September 16, 2026
- **Source:** Publisher's official text
- **Location:** Title 26—INTERNAL REVENUE CODE > 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

## Text

The credits provided in this subpart may, at the option of the taxpayer and irrespective of the method of accounting employed in keeping his books, be taken in the year in which the taxes of the foreign country or the possession of the United States accrued, subject, however, to the conditions prescribed in subsection (c). If the taxpayer elects to take such credits in the year in which the taxes of the foreign country or the possession of the United States accrued, the credits for all subsequent years shall be taken on the same basis, and no portion of any such taxes shall be allowed as a deduction in the same or any succeeding year.

( Aug. 16, 1954, ch. 736 , 68A Stat. 288 ; Pub. L. 85–866, title I, § 103(b) , Sept. 2, 1958 , 72 Stat. 1675 ; Pub. L. 94–455, title XIX , §§ 1901(a)(114), 1906(b)(13)(A), Oct. 4, 1976 , 90 Stat. 1784 , 1834; Pub. L. 96–603, § 2(c)(1) , Dec. 28, 1980 , 94 Stat. 3509 ; Pub. L. 97–248, title III, § 343(a) , Sept. 3, 1982 , 96 Stat. 635 ; Pub. L. 105–34, title XI, § 1102(a)(2) , Aug. 5, 1997 , 111 Stat. 964 ; Pub. L. 115–97, title I, § 14301(c)(20) , (21), Dec. 22, 2017 , 131 Stat. 2223 .)

## Nearby sections

- [26 U.S.C. § 901 Taxes of foreign countries and of possessions of United States](https://www.frixlaw.com/law-library/statutes/usc_t26_s901.md)
- [26 U.S.C. § 902 Repealed. Pub. L. 115–97, title I, § 14301(a) , Dec. 22, 2017 , 131 Stat. 2221 ]](https://www.frixlaw.com/law-library/statutes/usc_t26_s902.md)
- [26 U.S.C. § 903 Credit for taxes in lieu of income, etc., taxes](https://www.frixlaw.com/law-library/statutes/usc_t26_s903.md)
- [26 U.S.C. § 904 Limitation on credit](https://www.frixlaw.com/law-library/statutes/usc_t26_s904.md)
- [26 U.S.C. § 905 Applicable rules](https://www.frixlaw.com/law-library/statutes/usc_t26_s905.md)
- [26 U.S.C. § 906 Nonresident alien individuals and foreign corporations](https://www.frixlaw.com/law-library/statutes/usc_t26_s906.md)
- [26 U.S.C. § 907 Special rules in case of foreign oil and gas income](https://www.frixlaw.com/law-library/statutes/usc_t26_s907.md)
- [26 U.S.C. § 908 Reduction of credit for participation in or cooperation with an international boycott](https://www.frixlaw.com/law-library/statutes/usc_t26_s908.md)
- [26 U.S.C. § 909 Suspension of taxes and credits until related income taken into account](https://www.frixlaw.com/law-library/statutes/usc_t26_s909.md)
- [26 U.S.C. § 911 Citizens or residents of the United States living abroad](https://www.frixlaw.com/law-library/statutes/usc_t26_s911.md)
- [26 U.S.C. § 912 Exemption for certain allowances](https://www.frixlaw.com/law-library/statutes/usc_t26_s912.md)
- [26 U.S.C. § 913 Repealed. Pub. L. 97–34, title I, § 112(a) , Aug. 13, 1981 , 95 Stat. 194 ]](https://www.frixlaw.com/law-library/statutes/usc_t26_s913.md)
- [26 U.S.C. § 921 to 927 Repealed. Pub. L. 106–519, § 2 , Nov. 15, 2000 , 114 Stat. 2423 ]](https://www.frixlaw.com/law-library/statutes/usc_t26_s921...927.md)
- [26 U.S.C. § 931 Income from sources within Guam, American Samoa, or the Northern Mariana Islands](https://www.frixlaw.com/law-library/statutes/usc_t26_s931.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/usc_t26_s905. Check the current official text before relying on it. Not legal advice.