Read your instructions very carefully several times, I got the idea how to calculate the tax. Basically divide the house into two sets, one is rental and non-rental. Here are my another questions,
1. Rental part: had a rental income, paid no tax, took the depreciation. I had a very small rental income and paid no tax. So do not need 1116 and TT will automatically recapture the depreciation, right?
2. Non-rental part: It generated the large capital gain, paid the tax, will use 1116 to take the foreign tax credit. This income category is “passive”, right?
