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Level 1

How do I determine total investment assets on Form 1116 so I can allocate investment income expense to foreign income?

Complete Check stops me at: Form 1116: foreign tax credit comp wks: adj basis of tot inv ast must be entered.  This is to create the ratio to allocate $70 of investment interest expense to foreign income. How do I determine adjusted basis of total investment assets?

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Level 9 pk
Level 9

How do I determine total investment assets on Form 1116 so I can allocate investment income expense to foreign income?

Assuming that what you are talking about is soemthing like a  mutual fund which has invested in foreign funds and therefore has foreign income on which foreign taxes were paid on your behalf. You are trying to get credit for that foreign taxes  paid.  Right ?

In such a case , your broker  and /or the back-up sheet to your  Broker's Consolidated Report will detail  the foreign  % of holding  for the  specific fund. ---- thus it will say  Fund XYZ --- various countries 13%.  You then multiply this percentage  by your total honding in that fund to come up with the value of your  foreign holdings  -- which generated the  foreign income.

4 Replies
Level 9 pk
Level 9

How do I determine total investment assets on Form 1116 so I can allocate investment income expense to foreign income?

Assuming that what you are talking about is soemthing like a  mutual fund which has invested in foreign funds and therefore has foreign income on which foreign taxes were paid on your behalf. You are trying to get credit for that foreign taxes  paid.  Right ?

In such a case , your broker  and /or the back-up sheet to your  Broker's Consolidated Report will detail  the foreign  % of holding  for the  specific fund. ---- thus it will say  Fund XYZ --- various countries 13%.  You then multiply this percentage  by your total honding in that fund to come up with the value of your  foreign holdings  -- which generated the  foreign income.

Level 6

How do I determine total investment assets on Form 1116 so I can allocate investment income expense to foreign income?

But the question is....  "Adjusted Basis of investment assets generating foreign income"   Its not asking for a country or what % of the country it is.  It's asking for Adjusted basis - whatever that really means.   No info on TT.
Level 1

How do I determine total investment assets on Form 1116 so I can allocate investment income expense to foreign income?

same question.  form 1116 "error" is preventing me from filing
Level 1

How do I determine total investment assets on Form 1116 so I can allocate investment income expense to foreign income?

same issue here. No clarity from TT about which assets/investments this relates to.