Kiki
Level 4

Calculation 1116 1a (Gross income sources within country shown above)

For Form 1116   1a. Gross income sources within country shown above;

 

Sold Mutual Fund:  LOSS $5000   (Sales Price $30000,   Cost basis $35000)

Dividend income : $500

Interest income : $1000

 

Question 1

Number in 1a) should be

$ 31500 (Sales price 30000+500+1000) ?  OR  

$ - 3500 (-5000+500+1000) ?

 

Question 2

I also have $2000 income to rent land out, but $0 taxed due to exemption under the country rules.

Should this income be included in 1a even No foreign tax involved on this income?

 

I would really appreciate if someone helps me.