Right... they are reporting "other deductions: portfolio deductions" (that doesn't sound impossible to me as that does not imply an income from those investments. In fact line 55 is negative for both categories: more deductions than income).
I was not expecting the deductions to count against regular income... but yes I was missing the point that all that section is only relevant for FTC limitations; that's easy to miss answering the questionnaire even though that's the title of the k-3 section.
It would still be useful to use that deduction on line 3 of form 1116... but zero it is then.
Thanks.
