A credit is allowed for foreign income taxes paid or accrued. The loan is limited compared to that part of You.S. tax due to foreign source income. It is far from refundable, but any excess credit may be carried to other years to reduce tax. Banks and lending institution become heavy with foreclosed properties when the housing market crashes. They not nearly as apt fork out off your back taxes on a property that is going to fill their books with increased unwanted homes for sale. It is mu...