Foreign Tax Credit - Form 1116

[anup1993]

Hello,

This is related to sale of home in India and foreign tax credit (Form 1116)

There is an option where we are required to" .... "enter any other gross income within India. Do not enter any income reported in 1099-INT, 1099-DIV, Form 2555, and Schedules K-1."

In description I have entered "Sale of Home"

What value should I enter in section "Value for India"

What does "Other Gross Income" mean? 

What amount should I enter:

• Sale price of the home, before tax
• Amount received after tax was deducted (Sale price - tax paid)
• Capital Gain (Sale price - Adjusted Cost Basis)

Appreciate your help and guidance. 

Thanks

[DavidD66]

Form 1116 - Foreign Tax Credit has different categories for foreign income.  Each type is reported on a separate Form 1116.  Your income from the sale of a home in India would be box C - Passive Category Income.   To calculate the credit, you have to enter your foreign passive Income (your gain on sale of house), your gross income from India (e.g. if you had earned income from a job in India you would include that with your capital gain, and any other income from India, and enter it here.  For "Other Gross Income" you would put the total of all income reported on your tax return, US or foreign.  As for the amount to report for the sale of the house, you would report the gain (sales proceeds less adjusted cost basis), which should also be reported on reported on Form 8949 and Schedule D.