Foreign tax credit in case of Loss on real estate property

kash9 — Wed, 11 Feb 2026 10:43:50 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.

I am using TurboTax desktop Premium product.
Here are the steps I have followed in the TurboTax product, to take Foreign Tax Credit:
In FEDERAL TAXES > Deductions & Credits > Foreign Taxes

Foreign Tax Credit > click on "Yes"
Before We Begin > click on "Yes"
Foreign Taxes > click on "Continue"
Do You Want the Deduction or the Credit? > click on "Take a Credit"
Reporting Foreign Taxes Paid > Click on "Continue"
First Year You are Eligible? selected the "First year I am eligible for the election" and click Continue
Elect the Simplified Method > click on "Elect Simplified Calculation"
Completing Forms 1116 > click on "Continue"
.Foreign Tax Credit Worksheet > click on "Continue"
Choose the Income Type > selected the "Passive Income" and click on "Continue"
Country Summary > Created a Country "India"
Country Name "India"
Other Gross Income - India >
1. Description as "Capital gains fom Sale of Property"
2. entered the Gains from the Property 2. Loss from Property 1 is not entered as it is not considered in Scheduled D.
Definitely Related Expenses - India > did not entered details and click on "Continue"
Foreign Losses > did not enter anything here and click on "Continue"
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: Foreign tax credit in case of Loss on real estate property

Anonymous_ — Sun, 15 Dec 2024 04:56:49 GMT

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

kash9 — Tue, 15 Oct 2024 20:55:27 GMT

@Anonymous_ can someone help with this query? I have not received any response so far.
@pk

@DaveF1006

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

Anonymous_ — Sun, 15 Dec 2024 04:57:28 GMT

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

kash9 — Tue, 15 Oct 2024 22:08:07 GMT

@Anonymous_ is it possible for @pk to answer my qustion? Not able to at mention PK.

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

Anonymous_ — Sun, 15 Dec 2024 04:57:41 GMT

topic Re: Foreign tax credit in case of Loss on real estate property in Tax law changes

Foreign tax credit in case of Loss on real estate property

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

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

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

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

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