Form 1116 (3)
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 2

Form 1116 (3)

In turbo tax review, it asked me to input values for form 1116 (3) b and (3)c.  These are the adjusted basis for foreign source income and adjusted basis for total passive activity.  I tried putting in zero for both.  It accepted the zero for (3)b but not for (3)c.  How do I get the value to put in here?  Also, the "zero" for (3) b was probably wrong.  How do I fix that?

2 Replies
Employee Tax Expert

Form 1116 (3)

Your brokerage statement shows the foreign income and the passive income.Enter those numbers from the statement.

The 1116 is giving you credit for taxes paid to a foreign country. The IRS wants to know how much you made in which countries. A zero for income does not make sense. You would not pay taxes on zero income.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Level 2

Form 1116 (3)

Are you sure that putting in income is right?  The form is asking for "adjusted basis of investment assets generating foreign income," not the income.  Note that this is in the section relating to interest expenses.  I have zero interest expense so it seems the assets generating income should not matter.

Dynamic Ads
v
Privacy Settings