Hi,
Situation: US citizen living in Germany, trying to re-source income using form 1116.
TurboTax is asking how much of my re-sourced income consists of "foreign qualified dividends and long-term capital gains." Based on my calculations, this value is negative due to losses from the sale of stocks. However, TurboTax does not allow me to enter a negative number in this field.
While reviewing the IRS instructions for Form 1116 (specifically the Adjustment Exception section for Schedule D filers), I found the following:
"The amount of your foreign source net capital gain, plus the amount of your foreign source qualified dividends, is less than $20,000."
It goes on to state:
"Your foreign source net capital gain is the excess of your net long-term capital gain from foreign sources over your net short-term capital loss from foreign sources."
This leads me to two questions:
a) The number could be negative, correct? How do I enter this in TurboTax?
b) Is there a possible typo or ambiguity in the instruction? Specifically, referring to "net capital gain" as "the excess of long-term capital gain over short-term capital loss" (rather than over long term loss), seems counterintuitive.
