The U.S. IRS has released an international practice unit on Allocation and Apportionment of Deductions in relation to the foreign tax credit for individuals. The process overview of the practice unit includes the following:
This Practice Unit focuses on the general rules and processes of allocating and apportioning individual taxpayer's most common expenses, losses and other deductions (collectively referred to as deductions), reported on Form 1116, lines 2 through 4, against foreign source…