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Get your taxes done using TurboTax
@SandyG19 , sorry for the confusion ( I think ). You will notice that each of the articles that you so graciously referred, talk of "interest" being credited to your account either in the form cash/liquid or re-invested. This is what I called "constructively received" and therefore I quite agree with the comments of these articles. What I did not say, and probably should have , is that the answer really depends on the type of contract you have . I was assuming that the interest is credited to your account at the end of the term -- i.e. there is no crediting to your account or re-investment during the term.
If the contract allows for periodic crediting or automatic re-investment of earned interest, then effectively it would be "constructively received " and therefore US return would require you to recognize the amount of earnings ( even if there is a limitation on withdrawing the amount from your account ) and therefore the levied/paid foreign tax on the earnings should be eligible for foreign tax credit. Note that if the amount of foreign tax is equal or less than $300 per taxpayer, then the whole amount falls under the safe harbor rules and is recognizable / allowable for the tax year ( i.e. no limited allowability with form 1116 ).
I was trying to stay away from "mark to market" and "imputed earnings" and perhaps just made a mess of it -- sorry .
Does this come more in line with your thoughts ? Is there more I can do for you ?