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Deductions & credits
The gross income is inflated when I entered the gross income in the K-1 Trust In Put Form on line 7
That causes the line e of Form 1116 under Deductions and losses to double. That causes the percent of foreign source income to shrink compared to All Sources Income. The smaller percent reduces the deduction of expense against the foreign source income. That increases the "net " foreign source income and the limit amount the can be used this year.
While this means is the program need correcting, it does not seem to erase any credit like you are describing.
March 25, 2024
10:59 AM