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kash9
Returning Member

Foreign tax credit in case of Loss on real estate property

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

  1. Foreign Tax Credit > click on "Yes"

  2. Before We Begin > click on "Yes"

  3. Foreign Taxes > click on "Continue"

  4. Do You Want the Deduction or the Credit? > click on "Take a Credit"

  5. Reporting Foreign Taxes Paid > Click on "Continue"

  6. First Year You are Eligible? selected the "First year I am eligible for the election" and click Continue

  7. Elect the Simplified Method > click on "Elect Simplified Calculation"

  8. Completing Forms 1116 >  click on "Continue"

  9. .Foreign Tax Credit Worksheet > click on "Continue"

  10. Choose the Income Type >  selected the "Passive Income" and click on "Continue"

  11. Country Summary > Created a Country "India"

  12. Country Name "India"

  13. 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.

  14. Definitely Related Expenses - India > did not entered details and click on "Continue"

  15. Foreign Losses > did not enter anything here and click on "Continue"

  16. 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 

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5 Replies

Foreign tax credit in case of Loss on real estate property

I'll page @pk. Please check back later.

kash9
Returning Member

Foreign tax credit in case of Loss on real estate property

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

@DaveF1006 

Foreign tax credit in case of Loss on real estate property

You might want to contact Support.

 

What is the TurboTax phone number? (intuit.com)

 

@DaveF1006 is a seasonal employee and is not on the board at this time.

kash9
Returning Member

Foreign tax credit in case of Loss on real estate property

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

Foreign tax credit in case of Loss on real estate property

If you need an answer immediately, you should contact Support. 

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