@pk Thanks again for your help. I wanted to see if you had gotten a chance to read my last question. I was a little unsure what you meant about no double counting (positive or negative) and wanted to make sure that I have not misinterpreted what you mean with negative double counting. I put together the fictitious examples below of how I have handled it in the past where there were investment gains and how I am planning on handling it when I have investment losses. Does it look like my total foreign tax between active and passive income is all allocated without double counting in the example below?
| | Investment gains | Investment loss |
| Income from wages | 50000 | 50000 |
| Employer's pension contribution | 10000 | 10000 |
| Total active income | 60000 | 60000 |
| Taxes on wages | 15000 | 15000 |
| Working taxes reduction | -2000 | -2000 |
| Total tax on active income | 13000 | 13000 |
| Interest | 1000 | 1000 |
| Dividends | 1000 | 1000 |
| Capital gains | 2000 | -6000 |
| Total passive income | 4000 | -4000 |
| Total tax or tax reduction on passive income | 1200 | -840 |
| Property tax | 500 | 500 |
| Burial tax | 100 | 100 |
| Public service tax | 100 | 100 |
| Tax reduction for mortgage interest | -300 | -300 |
| Total tax bill | 14600 | 12560 |
| Declared foreign tax paid on form 1116 f) Certain income re-sourced by treaty | 13000 | 13000 |
| Declared foreign tax paid on form 1116 d) General category income | 1200 | 0 |
