It depends. in calculating the Foreign Tax Credit, the numerator is reported as a gross amount without regard to gains or losses. Besides if it did, this would reduce the numerator and give you less of a credit. This would not be to your advantage. Reducing the denominator, which is what it is designed to do, will increase your foreign tax credit.
Line 3D is reported correctly because this is Gross income irrespective of gains and losses. Line 3E reports total income, which has foreign gains or losses built into it, which is correct.
i think you are confused with the concept of net and gross amounts. Just remember, Line 3D is a gross amount that is listed and not a net amount as you suggest that it should be. Gains and losses area accounted for in Line 3E, like it should be.
Rest assured, TurboTax is reporting this correctly
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