In the Foreign Tax Credit Computation Worksheet, I entered expenses related to a foreign rental property on line 2b. There is a dropdown choice (I/J) for either "I: Itemized Deduction" or "J: Deduct from gross income". The default is an itemized deduction which results in a 1116, line 3b amount related to Deductible part of Self-Employment Tax. If I choose "Deduct from gross income", then that number becomes zero and I pay fewer taxes. My gut says that it should stay as "Itemized Deduction", but there is no information anywhere that explains when to choose "I" and when to choose "J". Should I choose Itemized Deduction or Deduct from gross income?
