@dzimmer10 what is your total gross foreign source income from all foreign sources ?
If the total gross foreign source from all form 1116 is greater than US$5000, then the deductible investment expenses ( from Schedule-A) , will be allocated between all sources of income ( world and the different foreign sources). What the form is trying to do is compute the taxable income from each of the sources and thereby compute a ratio for allocation of computed total tax between sources.
Does this make sense ?
