@seccam ,
1. because your return ( or that of your relative ) is filed under perjury jurat, it is not material whether the EA chose ( erroneously in me opinion) to enter the barter/exchange/disposal of capital assets and interest earnings as "other" -- it is the taxpayer's responsibility to be truthful. The fact that IRS has not flagged this ( because there is no "information return" to corroborate ) does not mean it is correct.
2. Note that India uses inflation adjusted basis for assets where as US does not --- this means that it is up to the taxpayer to prove that the basis used for US tax computation is correct -- cannot use India's figures for gain computation. IRS expects that the taxpayer has records to base the filings on -- else the basis is ZERO.
3. Agree that if the taxpayer's taxable income ( AGI adjusted for deductions ) results in zero tax liability, then foreign tax credit ( a non-refundable credit) will not allow for any allowable foreign tax credit but will be available for prior year or future year adjustments ( when foreign income present ).
4. Are you saying that the taxpayer is no longer a US person ( not a citizen/ Green Card ) and not residing in the USA ? If so why is she filing since she has no US sourced/ connected income? She does not get Social Security either ?
Having read through your response, and while I recognize that it is each taxpayer' choice as to how to file their return, my position based on tax laws is still the same -- amend the 2020 return and file 2021 properly. I do not agree with your EA's position.
I apologize, if I sound not willing to compromise my position--please forgive
Is there more I can do for you ?
pk
