To enter your foreign rental property sale in Form 1116 in TurboTax:
- Make sure that the sale and your gain is reported on Form 8949 and Schedule D.
- Navigate to the Foreign Tax Credit/Deduction section
- Answer the interview questions
- Indicate you want to take the credit, not the deduction
- Select Passive income for income type
- Select India as the country
- Enter a description like "India Rental Sale" and your gain on the sale (same amount reported on 8949/Schedule D.
- Note - adding your income/gain in this section does not add it to your taxable income. It is only used to calculate the credit.
- Continue and enter information where applicable
- Enter your foreign tax paid
- Continue with the rest of the interview.
- You will see your Foreign Tax Credit amount on the final page after continuing through the entire section
Do Not
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
