That is correct. On the f1116 for the “passive category income”, the tax credit is zero. It is on the “general category income” f1116 where you will get a tax credit. Also if you intend to e-file, the general category must be “copy 1” and the passive category must be “copy 2”. That is due to the fact that the 1st copy must state the greater tax paid. If you file by paper, it doesn’t matter which category of income is the 1st copy.
