The source of rental income is determined by: The citizenship of the renter. The taxpayer/owner's tax home. The location of the property management company. Where the property is located.When must the average exchange rate be used for accrued but unpaid foreign taxes? The foreign taxes were paid more than two years after the end of the tax year to which they relate. The foreign taxes were paid on the last day of the year prior to the year in which the taxes accrued. The foreign taxes are denominated in inflationary foreign currency. The taxpayer claimed the credit on accrued foreign income taxes