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5983387
New Member

stuck with form 1116 asking for Adj Basis of Tot Inv Ast

Can't seem to get this form to stop asking for Adj Basis of Tot Inv Ast on Form 1116(Copy 1) Foreign Tax Credit Comp Wks
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5983387
New Member

stuck with form 1116 asking for Adj Basis of Tot Inv Ast

I was pretty sure I did use the simplified method.  I had tried both 0 and leaving it blank but was unable to get through it.  At some point I ended resetting or something.  Not really sure what happened but was able to get rid of the prompt.

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5 Replies
pk
Level 15
Level 15

stuck with form 1116 asking for Adj Basis of Tot Inv Ast

@5983387  while I am not familiar with the screens for the on-line product,  I suspect you must have selected not to use  the "simplified " computation of the credit.  When I use simplified computation, it does not ask for  the "basis", "adjustment to basis" or "adjusted basis "-- it just uses the world income,  amount of each foreign source income, distributes the  deduction ( standard or itemized" between the incomes and then allocates the  US tax  on each of the foreign source income.

Note that form 1116 allocates  and thereby  computes the  Foreign Tax Credit as the lesser of the US tax and the foreign tax paid on the same  doubly taxed income.  This allowable credit being Non-refundable gets further limited by final tax liability -- FTC can only reduce your otherwise tax liability -- the rest is available for carry-over ( backward 1 year or forward till quenched /10 years ).

If nothing else helps, I would use the  adjusted basis  as the original basis  i.e. use an adjustment  of zero or blank  ( one user reported that Turbo did not like "0" and so perhaps the blank is a better choice.

 

IF you need more help on this,  please provide details of the situation, including  foreign source country/type, passive ( INT/DIV/ Rental income etc. ) -- the more details the more focused the solution/answer.

 

Is there more I can do for you ?

5983387
New Member

stuck with form 1116 asking for Adj Basis of Tot Inv Ast

I was pretty sure I did use the simplified method.  I had tried both 0 and leaving it blank but was unable to get through it.  At some point I ended resetting or something.  Not really sure what happened but was able to get rid of the prompt.

pk
Level 15
Level 15

stuck with form 1116 asking for Adj Basis of Tot Inv Ast

@5983387 , are you all set ?  Is there more I can do for you ?

stuck with form 1116 asking for Adj Basis of Tot Inv Ast

I'm having this same problem - any specifics. To my knowledge, I have done all the simplified methods. 

DaveF1006
Employee Tax Expert

stuck with form 1116 asking for Adj Basis of Tot Inv Ast

If entering 0 or leaving it blank hasn't worked, try entering a "1".  This often clears the error and allows you to move forward in your return without negatively impacting it.

 

 

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