For gross income on Form 1116, you should report only the taxable gain, not the full proceeds (proceeds - selling expenses) - cost basis = taxable gain.
No. You typically would not use the cost...
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For gross income on Form 1116, you should report only the taxable gain, not the full proceeds (proceeds - selling expenses) - cost basis = taxable gain.
No. You typically would not use the cost basis as a "definitely related expense". These are expenses that are directly attributable to the income that you report on Line 1a. Therefore, you should not list those same amounts again as expenses on Line 2.
To return to your Form 1116, you can type, "foreign tax credit" in the search box located at the top right of your screen and then click on "jump to foreign tax credit"
When inputing your information for the Foreign Tax Credit in the Deductions & credits section, you will be asked to enter the country. This is an important step, needed to run adjustment factors. Once you have inputted all of the information during the TurboTax interview process, you might find that the amount will be lower than your Schedule D gain.