Is it possible to opt to treat long-term capital gain income (all, not just $20,000) as ordinary income for both computing the taxes on the 1040 and for computing the foreign tax credits (not requiring it to be adjusted)? In that case, it appears that our taxes would be significantly lower - by thousands of dollars - on the sale of a house abroad.
If that is allowed, how might one opt to use the usual tax tables in TurboTax. I can see how to override the adjustments on Form 1116, but that seems wrong if the income is not taxed as ordinary income.
Thanks!
