Form 1116 (COPY 1) Adj Basis of Tot Inv Ast

[KandM2025]

In review TT has me check this number and it's currently blank.  0 doesn't work.

I have a single international mutual fund. There are no adjustments to expenses or interest. I've filled 1116s through Turbo Tax for years and never had an issue.  Looking at my passed returns, this section (4b1) is always blank.  I'm assuming since the 0 and 1s are in there, it's not recognizing that this should be blank, but I have no idea what in the interview process might have triggered this to get filled out.

Any ideas?

[AmyC]

On the 1116 Comp Wks., they should either be blank or have a number that affects the calculations, no zeroes.

For data source: Line 4b1A, all columns:

If you are itemizing deductions and the total of all lines 3d on all copies and columns of Form 1116 exceeds $5,000, from Form 1040, Schedule A, line 9. Columns A, B, and C will equal this amount if there is income on line 1 of that column.
 

For more information about  Line 4b1(A), all columns:

If the total gross foreign source income on all Forms 1116, line 3d is greater than $5,000, the deductible investment interest will be allocated per the government instructions. These amounts are the total deductible investment interest shown on Schedule A, line 14. If the total gross foreign source income on all Forms 1116 is not greater than $5,000, this allocation does not need to be made and these lines will be blank. You do not need to make any entries here.

[user17709723980]

Hi @AmyC ,

Thanks for your response to this question. I'm in the exact same situation as the original poster. In past years, TT never put values in this part of the worksheet. This year (tax year 2025), TT is complaining about missing values for:

• line 4b(1)c: Adj Basis of Tot Inv Ast
• line 4b(1)b: Adj Basis Fgn Inv Assets

Your reply didn't clarify for me whether:

1. I've done something wrong in the Foreign Tax Credit questionnaire; or
2. TurboTax genuinely needs some kind of information from me related to these investments.

Can you please demystify for me what I need to provide TT to make it happy with this worksheet, and where I should be able to find that information?

It's frustrating to pay money for a product predicated on explaining and simplifying taxes, only for it to hit you with an impenetrable blocker like this.

[user17709723980]

@KandM2025 FYI, you may want to check out DaveF1006's suggestion and explanation to a very similar question asked recently: Form 1116 Worksheet Error for "Deductible other interest

[KandM2025]

Likely not right, but I just put my mutual fund value in 4b1c.  It then asked me for a value for 4b1b, which I put my mutual fund value again. That cleared the error and had no impact on my taxes (as far as I could tell) 

[jujigatame]

@AmyC 

The problem with this answer is that TurboTax forces you to have something in rows 4b1b and 4b1c even if row 4b1a is 0.  The smart check will fail otherwise.  Does this mean we actually need to go searching our brokerage statements for cost basis figures for an investment interest expense deduction of 0?  It doesn't make a lot of sense.  It seems like this shouldn't be necessary, and if it is necessary, shouldn't TurboTax ask us for this information earlier in the questionnaire in a clearer way?

[AmyC]

It depends.  

• The form is looking for real values so you do want to keep that information with your tax file. Lines 4b1b and 4b1c are the allocation ratio. The IRS is looking for the basis of the  specific investment on the line 4b1b  divided by total investments you own (stocks, bonds, cash) on 4b1c.
• If you have no deduction you can make up numbers to get past the allocation screen. You just can't use a zero in the denominator.

As for clarity, I suggest you leave feedback where the developers will read it.

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@jujigatame