Splitting FTC and investment income

[akumar]

Situation, CDN resident work in USA, wife lives and works in Canada. File married filing joint in US. My income is significantly higher than wife.

I have investment, interest and w2 income in the USA. My wife’s CDN income, even after foreign tax credit increased my USA taxes.

Question
-can I claim all USA foreign tax on my CDN return
-can I split interest investment income on my wife’s return

[nelsona]

You can claim US taxes if your are reporting the US income.
Don't think of reporting her income as increasing your US taxes. Think of it rather as decreasing the tax you would have paid if your reported as married filing separately.

Investment income is imputed (prorated) based on the portion each one contributed to the account.