@pkThanks again for your quick reply!
For the active income, in my US declaration I am declaring the amount paid in foreign tax on wages which is calculated the same regardless of any passive income so this is definitely allocated.
For the passive income, if I choose to not declare anything in my US declaration, then the reduction of the tax burden due to the capital losses (kind of a negative tax) is not actually accounted for. This reduction is taken on the overall taxes that I pay which includes many different taxes which I do not include in my US tax declaration (property taxes, burial taxes, public-service taxes, etc). Is this ok to do like this or do I need to somehow take into account this negative tax on my passive income? If this needs to be taken into account, where should I do this?
