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Deductions & credits
The FTC is by category. So that fact that you paid no foreign tax on capital gains (the passive category on the 1116) and that you had no other passive income means you are not double taxed and cannot get a foreign tax credit for that. Just be glad that US capital gains taxes are so incredibly low.
You might try using the foreign earned income exclusion instead of the FTC to deal with your foreign salary income. That might be better, though I don't think so. These is an area of taxes that is incredibly complicated so I like to try it both ways and see what works best.
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‎January 28, 2024
11:37 AM
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