Trying to get a Foreign Tax Credit in connection with two K-1/K-3s.  I'm a limited partner with less than 10% interest (actually, less than 1% interest) in each business entity.  Filing as married/joint.  Total Foreign Taxes paid is barely over the $600 threshold for automatically avoiding Form 1116 (total is $654 [$589 on one K-3, $65 on the other].

If I let TurboTax prep the 1116, and include the $589 and $65, I get $17 as a Foreign Tax Credit.  If I leave off the $65 from the 2nd K-3, and only report the General Category Income on the 2nd K-3, TurboTax does NOT prepare Form 1116, and I get $589 as a Foreign Tax Credit.

SO... here's the question ... do I HAVE to claim the $65 Foreign Tax Credit on the 2nd K-3, or is it legit to just leave it off?  OR, since I'm less than 10% interest, must I report ALL of the income (the passive column c income as well as the general column b income) as passive, and, if I do the latter (all passive), will it still required the form 1116?

OR.... if I let TurboTax do its thing, and only get the $17 Credit, will it know to carry forward the remaining $637 each year up to 10 years until it fall under $600 and can ALL be claimed?  Not sure why it won't still give the $600 Foreign Tax Credit and just carry forward the $54 excess - unless there is a way to force that.

HOPE I'M NOT BEING TOO CONFUSING!