I believe that the rate at which HTKO would apply is the rate that would apply to the income in question, but I am not an expert in this area.
You have posted a number of questions about Form 1116. There are a lot of limitations on the support for Form 1116 in TurboTax. The Unsupported Calculations document lists many uncommon or complex situations that are not supported. See item 8 under Foreign Income, beginning near the bottom of page 2 of the document and continuing on page 3. In particular, note the following.
"If there is passive category income that is treated as general category income because it is high taxed (HTKO), you must read the IRS Form 1116 instructions for line i and lines 2-5 and 13 on how to enter this income and the related foreign tax. Amounts automatically calculated on these lines must be overridden."
Overriding the calculated amounts can only be done in forms mode in the CD/Download TurboTax software. There is no way to do it in TurboTax Online. In addition, the overrides will prevent e-filing and will void the TurboTax accuracy guarantee.
I suggest that you seek professional help for preparing your tax return, rather than trying to force TurboTax to handle things that it is not designed to handle.
