I am confused. I have 2 1116 forms.
One for general category income:pensions and annuities and one for dividend, interest and rental
income.I filled out Schedule E with all the
necessary information.
If I include the rental expenses then
it doesn't use the old tax credits and I owe about $500. There is loss on line 17 which
is negative foreign source taxable income and it is less than zero- so you have no
foreign tax credit for passive income.
If I don't include the rental expenses
on the 1116, then it uses the carryback or carryover taxes from
2012-2107 and the taxes are available for credit. Then I owe no taxes
for 2018.
I found an entry by Turbotax saying to
not enter the expenses twice which I am including. What is correct?
If the expenses must be added on the 1116, then is there a way force
the old credits to be used?
Entry: foreign tax credit section?
This may be more of a software question. I'm taking the foreign
tax credit for rental income. Do I enter rental expenses (management,
insurance, etc) in the rental income section and again in the
forWhere do I enter expenses pertaining to a rental
property? In the rentals section or in the feign tax credit
section? Both places prompt you for expenses. If not, where is most
advantageous to claim them?
Answer:
DO
NOT enter anything in the program TWICE ... rental expenses go on the
Sch E only.
And
based on the number of postings you really should seek professional
assistance with this confusing topic.
