I asked ChatGPT what rental income should be included on Form 1116 line 2e. ChatGPT is not always right but here is the answer I got. That would suggest that Turbotax is using the wrong number. Please, have that looked at.
From ChatGPT:
On Form 1116, Line 2e is used to report passive category income, which includes rental income. The amount you report on Line 2e should generally be the net rental income after deducting allowable expenses from the gross rental income.
Calculation for Reporting on Form 1116, Line 2e:
Gross Rental Income: This includes the total income received from the rental property before any expenses are deducted.
Allowable Expenses: Deduct from the gross rental income the allowable expenses related to the rental property. These may include property management fees, repairs, maintenance, property taxes, mortgage interest, and depreciation.
Net Rental Income: The result of subtracting the allowable expenses from the gross rental income gives you the net rental income.
Reporting on Form 1116, Line 2e: The net rental income figure, after deducting allowable expenses, is what you would report on Line 2e of Form 1116 in the passive category income section.
