2555 for earned income net loss and 1116 for passive income net profit?

I am almost going insane with these forms!.
My questions are :-
•I have  a loss ($3000.00) from a small business. Do I need to use 2555 even though it's minus on Schedule C ?
•I  have  passive income from a flat rental which has a net profit  ($16,000.00) for which I'm paying dearly in UK tax.   I'm assuming I use Schedule E.  Am I correct in thinking I can use 1116 as a foreign tax credit for this?

thanks  for any help

 

1. If you elect not to claim the foreign earned income exclusion you cannot claim for the next 5 years, so most people would file a 2555.

2. In most cases rental income is general limitation, not passive but yes you should be filing Forms 1116.

Thank you so much for your reply Guya.

I have had conflicting advice regarding the passive/general income. If I make a mistake in the eyes of the IRS, does it mess up the returns ?...

I've not filed a 2555 previously. I've tried to make it work but  I can't figure out how to put it on the 1040.    I figured I'd  it be my first time be next year?.... then I can use the Turbo Tax software which has been mentioned on this forum which I've tried and can see it could be really helpful. I've run out of time for the CD in the post version .....

Meanwhile I'm sharpening my pencils and trying to find an eraser so I can start to fill in the blanks for the deadline on Monday.

Best Wishes for the Holidays

Alcat