All good questions which I agree you would think should be included. My TT source, who I think really understands the IRS rules, the definition of gross proceeds in this case is taxable proceeds. Thus, capital losses are added back in, a substantial effort I might add, but not non-taxable portion of social security benefits, non taxable state refunds, tax exempt interest and dividends, etc. Can't speak to all possible items as I'm far from a tax expert and relied on my TT source's input which allowed me to reconcile the difference between my AGI and line 3e on 1116 within $1 or so by adding back just my ST and LT capital losses. In this situation, I hope TT mirrors the IRS definition of Gross Proceeds for purposes of this calculation. TT would be wise to develop an actual worksheet for this reconciliation of the difference.
