Yes, I followed your steps.
First part, I entered the sales information about the inherited house. TT calculated the capital gain tax ok.
Second part, getting the foreign tax credit.
Go to the "foreign tax" in the Deduction.
1. I choose "You have no foreign tax credit carry-overs from earlier years, or ... ""
2. Choose "Take a credit"
3. asking "INT", then "DIV", passed since no INT and DIV.
Completing Forms 1116
4. Choose "Passive income"
5. Add a Country, choose a country.
6.Enter "sold inherited house", "400,000"
7.Description/amount/country,deduction type"
Enter "expense", "$20,000", country, "Deduction from gross income"
8. Choose,"No, I have foreign taxes paid on ..."
Foreign taxes on Other Income, enter "$20,000"
9.Country foreign country
Total foreign income for this category $400,000
Foreign qualified dividends and L.T. capital gain ????
What should be entered, $0 or $400,000 ?
