Unfortunately, you will not receive foreign credit on your rental as you have a loss situation for US tax purposes even though you paid tax on the rental in a foreign country.
Line 2. For Definitely related expenses - you would include mortgage interest, insurance, property taxes, management fees, maintenance, repairs, depreciation, supplies, etc. for the RENTAL. all the expenses from Line 20 on Sch E and enter that amount on Line 2 F1116
Line 3a. Enter the following itemized
deductions (from Schedule A (Form
1040)) on line 3a.
• Medical expenses (line 4).
• General sales taxes (line 5).
• Real estate taxes for your home
(line 6).
If you don't itemize deductions, enter
your standard deduction on
line 3a.
Line 3b. Enter on line 3b any other
deductions that don't definitely relate to
any specific type of income (for
example, the deduction for alimony paid
