According to my CPA, I have a bunch of foreign tax credit carryovers from 2007 that expire after this year and I'm trying to find a cheap and risk-free way to use them, which will require me to generate some "foreign income" before the year ends. I do my trading within an LLC with mark-to-market accounting. The best idea I can come up with is buying EWU ahead of its December ex-dividend date and hedging against price movements in EWU by shorting FTSE 100 (not exactly the same index tracked by EWU, but probably close enough) futures, closing all positions on the ex-dividend date. I should then end up with the foreign dividend and a capital loss roughly equal to the dividend's value. Since EWU only invests in UK stocks, there shouldn't be any tax withheld from the dividend. If anyone has better ideas, I'd love to hear them.