Thanks Heather for the detailed answer! That helps a lot.
I have 2 questions:
- the 1116 instructions say that we should not enter any interest on line 2. From your example, I guess this is just for interest paid for a loan for a home we live in. And so I should disregard this rule for interests paid for a loan for a rental. Is that what you understand too?
- but why is a home you own and live in should be put on 1116? I thought foreign tax credit was for taxes paid on income only.
Thanks for your help
