Sir,
Thanks for your detailed response, but I am still having some doubts on how to enter my foreign tax credit Form 1116 for the sale of foreign property.
Step 1. I have already manually added the entry to Schedule D (Box F), with proceeds from the sale minus cost basis. TT correctly shows the LTCG and includes this in my income.
Step 2. Now I am trying to add Form 1116 and following your instructions. You mention "10. Other Gross Income say Sale of Property and the Gross Amount of the sale". What should I enter as the Gross Amount of the Sale - is it the proceeds from the sale or the LTCG? Because, in a later screen it is asking me "Any foreign source qualified divideds or long term capital gains". In that screen, it is pre-popluating the amount I entered earlier = proceeds from the sale. Then what should I enter in the field Foreign qualified dividends and l.t. capital gains?? Is it the LTCG?
Appreciate your guidance.
