I want to claim a foreign tax credit for taxes I paid on foreign rental income. How do I enter this on form 1116 in Turbotax?
Lets assume $10,000 foreign rental income. I had $6,000 allowable expenses, so according to schedule E I have $4,000 foreign income.
How do I enter this on form 1116? Do I enter 4,000 as foreign income in this category?
The letter of TurboTax seems to suggest that I enter $10,000 income, and then at the deductions it tells me that I shouldn't enter any deductions (the $6,000 expenses) because i take a standard deduction. That seems incorrect?
Online sources seem to contradict whether to enter $10,000 as income and then report the $6,000 as definitely related expenses, or to enter $4,000 as income (after all, this is then added up as 'total income' on form 1040).
