I discovered the answer in a forum. I would like to share it to possibly help other TT users.
If you cannot figure out how TT came up with Form 1116, Line 3e it may be because of this:
When calculating your Gross Income from Capital Gains, you cannot take the summarized numbers off Schedule D lines 1a, 1b, 2, 3, 8a,, 8b, 9 or 10. You must go through all the individual sales of your investments found in the detail of Form 1099-B and only take the positive values. Then add to that the Schedule D, Line 13 Capital Gains. This will give you the total for the Capital Gain portion of your Gross Income.
