I have foreign source income (India) from three sources - Rental, Interest and Dividend.
Tax financial year is from April to March in India. For credit using Form 1116 I have to report taxes paid on each source.
How do I allocate the income and taxes for foreign tax credit purpose
- Do I add up the foreign income from Jan to December and allocate the taxes paid from two different financial years of the foreign country to report on form 1116?
- Foreign tax is on the combined income but Form 1116 asks for taxes on each source - I am assuming I would allocate to each source from the total taxes paid using a fraction each source is out of total taxable foreign income.
- is there an IRS document that goes into these details where the financial year is different?
