I have rental income from Canada. I already pay taxes for that income in Canada so I'm eligible for foreign tax credit.
This is the second year that I am claiming a foreign tax credit. Last year Deloitte (accountant) did my taxes and they did not use the simplified method. I'm doing my taxes using TurboTax this year and out of courtesy, my former accountant told me that he believes I should select "First year I am eligible for the election."
My first question is, does it matter if the choice I make is incorrect?
My second question is, if I select "first year I am eligible for the election", does that mean the simplified method will be used?
Because I see the same "Foreign Tax Credit" form, form 1116, both on the 2018 tax return, and on the 2019 tax return. It doesn't seem to me that a simplified method was applied. For tax year 2019, I chose "First year I am eligible for the election" in TurboTax.
