I own a house abroad and get rental income from it. I pay income taxes on the rental income in the foreign country. Because of how the FTC is calculated, I get a very small credit each year, and a large chunk of it is carried forward.
In a few years, if I decide to sell the house, I will have to pay a large amount due to the capital gains tax and depreciation recapture. Will I be able to offset this amount using the FTC carried forward?
