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.
Here are the steps I have followed 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 > 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.
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
