@BlackPanther2020 , your understanding is correct. As you mentioned the problem with using form 1116 is that it limits the allowable credit for the year based on the ratio of foreign income to your world income ( in a round about way) but it does allow carry back and forward for the unused portion of the claimed/recognized foreign taxes paid. That is why I suggested that you work out your amount of credit both ways and see which is more beneficial in your particular case ( and what you expect your future scenario to be ). It all depends on your specific facts and circumstances.
Is there more I can do for you ?
