Not trying to be difficult but why would anyone who doesnt own a controlled foreign corporation or a passive foreign investment company read this?? I think the instructions are just unclear. You have to read the instructions for line 13 while remembering at the beginning of the instructions it gave a list of excluded income items not included in the instructions for line 13. No where does it even say (see list of excluded income items at beginning of instructions). I am a retired CPA and should not have just skipped ahead to the instructions for line 13, but what is turbo tax's excuse?? I don't put all the blame on turbo tax. The instructions at best are incomplete. A preparer should not have to put disparate instructions together in this way to come up with the correct answer. Turbo tax evidently read the instructions for line 13 just like I did and also came up with the wrong answer. I assumed turbo tax was correct and would have probably made the same mistake it did. I think the IRS should change the instructions to point a preparer to the list of excluded income items in the definitions. Then this probably wouldn't happen.
