Question about Foreign tax credit in case of Loss on real estate property

kash9 — Tue, 15 Oct 2024 15:57:48 GMT

Sold Two properties in India:
Property1: Foreign property (second home) sold at a loss (LongTerm)
Property2: Foreign property (plot) sold at a gain (LongTerm). Paid taxes in India
And need help with some tax filing questions.

Filed the details of both the properties in the Income section. Scheduled-D (Part II) shows loss on proprty1 as adjustment in column g and gain on property 2 in column h.

Here are the steps I have followed to take Foreign Tax Credit:
In FEDERAL TAXES > Deductions & Credits > Foreign Taxes
1.Foreign Tax Credit > click on "Yes"
2.Before We Begin > click on "Yes"
3.Foreign Taxes > click on "Continue"
4.Do You Want the Deduction or the Credit? > click on "Take a Credit"

5.Reporting Foreign Taxes Paid > Click on "Continue"

6.First Year You are Eligible? selected the "First year I am eligible for the election" and click Continue
7.Elect the Simplified Method > click on "Elect Simplified Calculation"
8.Completing Forms 1116 > click on "Continue"

9.Foreign Tax Credit Worksheet > click on "Continue"

10.Choose the Income Type > selected the "Passive Income" and click on "Continue"
11.Country Summary > Created a Country "India"

12.Country Name "India"

13.Other Gross Income - India > Description as "Capital gains fom Sale of Property" and entered the Gains from the Property 2. Loss from Property 1 are not entered as it is not considered in Scheduled D.

14.Definitely Related Expenses - India > did not entered details and click on "Continue"

15.Foreign Losses > did not enter anything here and click on "Continue"

16.Foreign Taxes Paid - India > entered the taxes paid and click "Continue"

I have these following questions:
6. First Year You are Eligible? selected the "First year I am eligible for the election" and click Continue

Question: Not sure whether this is correct option for me, Please explain what this is.
7.Elect the Simplified Method > click on "Elect Simplified Calculation"

Question: Not sure whether this is correct option for me, Please explain what this is.
13.Other Gross Income - India > Description as "Capital gains fom Sale of Property" and entered the Gains from the Property 2. Loss from Property 1 are not entered as it is not considered in Scheduled D.
Question: is this the correct way of entering ignoring the Propoerty 1 loss here. Also I did enter Sale proceeds - cost basis as the income here, is that correct?

15.Foreign Losses > did not enter anything here and click on "Continue"
Question: not sure If I need to enter loss on Propoerty 1 here

@DaveF1006

Re: Question about Foreign tax credit in case of Loss on real estate property

kash9 — Tue, 15 Oct 2024 15:57:05 GMT

using the TurboTax Premier

topic Question about Foreign tax credit in case of Loss on real estate property in Tax law changes

Question about Foreign tax credit in case of Loss on real estate property

Re: Question about Foreign tax credit in case of Loss on real estate property