@Kiki , having read through your post, description of situation and agreeing with @Anonymous_ about generally passive character of rental income, here is what I understand of the scenario:
(a) you a US person ( citizen/ Green Card / Resident for tax purposes ) live in the USA
(b) You own land in a foreign country ( which country ? ) that you rent out , through management services
(c) your total income from this rental is US$5000 , which incurs Prop Tax of US$1500 and management fees of US$1000. Thus your net income from this rental is US2500 and which you recognize on schedule-E
(d) you pay NIL/None income tax on this rental to a foreign country.
Given the above , why are you filing a form 1116 to claim foreign income tax on this income stream? I agree that the 1099-DIV and 1099-INT reported foreign earnings and taxes paid thereon is indeed eligible for foreign tax credit. And usually these taxes ( those reported on 1099-DIV and 1099-INT ) are also subject to safe harbor rule of full / unlimited credit of $300 ( for single )/ $600 ( for joint filers) and without using the form 1116.
So please can you clarify your situation in light of above comments ? Additionally your citizenship and the country where the land is located would be useful ( for treaty assertion purposes ).
I will circle back after I hear from you
pk
