We sold a vacation property in Canada on an installment sale. Reported the details to Turbo Tax and it populated from 6252 (Installment Sale Income) with what appear to be appropriate numbers.
Turning to form 1116 for the foreign tax credit, the numbers there do not appear to correspond with the numbers elsewhere. On Line 1a of Form 1116, the number for gross income from Long Term gain (generated by TT) is far less than half of the annual installment income on line 24 of 6252 -- a difference of about 90,000. That seems impossible. And the TT number appears no where else in the entire return. Is this an error, or are there hidden calculations going on in the background?
Also, on line 18 of Form 1116, the tax form directs individuals to enter the amount from line 15 of the 1040-SR, but TT did not do that. Instead, it populated the form with a number about $80,000 less than line 15 of 1040-SR.
Where do these mysterious numbers come from? It makes me think Turbo Tax is in error, because I see no justification for these strange numbers.
