Is the Passive Income Limit related to adjusting the amount of foreign source qualified dividends?
The instruction says: "To adjust your foreign source qualified dividends or capital gain distributions, multiply your foreign source qualified dividends or capital gain distributions in each separate category by 0.4054 if the foreign source qualified dividends or capital gain distributions are taxed at a rate of 15%, and by 0.5405 if they are taxed at a 20% rate. Include the results on line 1a of the applicable Form 1116."
How do I know what rate the foreign source qualified dividends were taxed at? Does here mean % taxed in US or % taxed by foreign countries? If I use "Box 7 - Foreign Tax Paid" divided by Box 1b "Qualified Dividends", the number is greater than 20%.
