@ramskermfc , while I totally agree with my colleague @RobertB4444 on the subject, I have a slight different view point. If the requirement is to get most foreign tax credit i.e. reduce max US tax liability, and given that your Total Foreign earnings ( that has been doubly taxed -- US and Foreign Tax authorities ) is probably a small fraction of your world earnings, your allowable Foreign Tax credit would be limited by effectively a ratio of Total Foreign Income to World Income., and therefore you may get a better outcome ( but you need to try this out in your particular case ) by recognizing only $600 ( assuming that you are filing a joint return ) as your foreign tax -- you will get all $600 -- safe harbor. And not choose form 1116. That is my view.
