The foreign tax credit from the K-1 would not be allowed as it was limited. Therefore, I put it as a schedule A deduction. The foreign tax credit was put for the passive (dividends) on a form 1116. Turbo tax allowed this treatment (deducting the foreign taxes on the general K-1 taxes on schedule A and a credit on 1116 for the dividend related foreign taxes). Are the two types of foreign taxes treated as separate pools (passive vs general)? I thought that if you selected a credit, it was applied to all foreign taxes and if you selected a deduction (schedule A) that it was applied to all foreign taxes. Turbo allowed them to be applied separately. Can you let me know this answer.
