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I have difficulty in Answering Following details regarding Form 1116 – Foreign Tax credit My foreign income consist of Interest, Dividend and Lang term gain. Turbo tax has already calculated what will be Foreign tax credit. Even than I have been asked to answer following. 4b3c : Adjusted basis for total Passive activity Assets 4b2c : Adjusted basis for total Business Assets 4b1c : Adjusted basis for total Investment assets Please help me. How to answer this. I have answered 0 (zero) for all 3 but Did not accepted by turbo tax.

I have difficulty in Answering Following details regarding Form 1116 – Foreign Tax credit My foreign income consist of Interest, Dividend and Lang term gain. Turbo tax has already calculated what will be Foreign tax credit. Even than I have been asked to answer following. 4b3c : Adjusted basis for total Passive activity Assets 4b2c : Adjusted basis for total Business Assets 4b1c : Adjusted basis for total Investment assets Please help me. How to answer this. I have answered 0 (zero) for all 3 but Did not accepted by turbo tax.

So I work and have a side business on eBay. When I calculate my taxes without eBay included I show a return of $750. The eBay income is say $10,000 net sales with a Cost of Goods of say $9500, so a profit of $500. When I enter that in Turbo Tax desktop my federal tax owed jumps by over 750 wiping out any return, which can't be right for what amounts to only $500 in extra income. It seems to be the inventory calculation that is messing things up. Say I started with $4000 in inventory and I ended with $4000 in inventory and spent $9500 to buy the goods that I sold. As soon as I enter the $10,000 in income the federal taxes owed jump up by $750 and even after I enter the end inventory and purchases and it shows a COG of $9500, the taxes do not come back down. Something isn't working right. Even if I adjust it to a negative profit it still shows a negative return wiping out the $750 return I was getting before adding the business info. Anyone know what's going on?