@sweerkaul , without trying out the scenario on my copy of TurboTax ( desktop ), I wnet back and looked at the form 1116, made a dummy version fillout completely by hand and then searched / inspected the instructions for the form 1116 for the use of the word "basis" or "adjusted basis". My conclusion is that somehow we are misusing the word basis in this context ( probably TurboTax error but I have yet to verify that ).
If you look at the form 1116, it deals ONLY with "foreign sourced income", "Total Income from all sources", "deductions" ( standard and/or itemized), Adjusted Gross Income, foreign taxes paid/accrued, Taxable Income, Total Tax on Taxable income. That is it . There is no place for basis or cost of your investment generating the foreign income(s). Are you using On-Line version or desktop version of TurboTax ?
I would use your foreign dividend income; foreign taxes paid date ( 12/31/2020 is usually what I use ); amount of foreign taxes paid, country where the income came from;
Ditto for Interest income.
This should all TurboTax to fill out the form 1116 with the requisite numbers.
Leave all the adjustment s alone -- it is not applicable for Israel or India and not for the passive incomes that you have.
That should work-- let me know if you need more help --- if the post becomes NOT of general interest then you can PM me with details and we can go on from there
Stay safe
