As a US citizen residing in Virginia, I'm required to complete Form 8689 for my US Virgin Islands condo rental net income. What value should I report on Form 8689, line 41 & 42? And, if line 42 is a refund, does the refund come from USVI authorities, OR refund from my 1040 US tax filing?
Here are the entries:
> Net income loss on line 11 is ($8,116) after expenses.
> Line 29 is also ($8,116).
> Line 30 is +$21.
> Line 31 is +$5,185.
> Line 32 is ($5,164)
> Line 33 (from 1040, line 8b) is ($14,007).
> Line 34 calcs to 0.579; (math: line 29 divided by line 33)
> Line 35 calcs to ($2,990); math: line 32 multiplied by line 34
> Line 39 is zero.
