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Updated over 7 years ago on . Most recent reply
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is foreign tax credit allowed when US no taxable income in US
I have a few rentals in the USA (Florida) and in France. The tax systems are quite different. In France for furnished flats, for example, taxable income is 50% of gross income with no deductions allowed. Simple but different. I file a tax return in France on the French properties and recently have had to pay tax on revenues. In the USA I file the Florida properties and the French properties using US tax rules. Under these the French properties are not generating a profit. But I have paid tax in France and so (I think) can claim a foreign tax credit in the US.
Does anyone have any experience of foreign tax credits and do you know if I can claim the credit even if I do not have taxable income from those properties in the US?