404974
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Hi. The adjustment is correct on line 1a. Please see the following explanation.
According to the instructions for Form 1116, Foreign Tax Credit, page 7, If you have foreign source qualified dividends or foreign source capital gains (including any foreign source capital gain distributions) or losses, you may be required to make certain adjustments to those amounts before taking them into account on line 1a (gross income) or line 5 (losses).
Foreign Source Qualified Dividends and Gains
If you have received foreign sourced qualified dividends and/or capital gains (including long-term capital gains, unrecaptured section 1250 gain, and/or section 1231 gains) that are taxed in the U.S. at a reduced tax rate, you must adjust the foreign source income that you report on Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), line 1a.
How do I make the adjustment?
Someone else here ---Thanks for the info.
It's not clear from the worksheet how line 11 shows an amount where it was taxed at 0%.
The form starts with taxable income, then deducts the dividends. Next there are some comparisons and somehow on line 11 it shows the dividend amount as taxed at 0%. A bit odd, but at least I know now where the data came from. The system was showing me a general menu when I tried to see the source using forms.
Hi,
Where do you get the multipliers 0.3788, 0.5051 ? I do not find thes numbers in Pub 514.
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