@taxhero1 , while agreeing with the general comments by my colleague @Mike9241 , a very simple way to look at the limitation of allowable foreign tax credit is that the recognized amount of foreign tax credit ( generally the amount you have paid or accrued ) is multiplied by a factor which takes into account the ratio of foreign sourced income to world income ( income from all sources ). The non-allowed portion of the credit is available for carry back ( 1 year ) and forward but available ONLY when there foreign income available and again limited by the same rule. It is not quite as simple as related here but gets you in the ball park.
Does this help or ??
pk
