Form 1116 line 1a adjustment

[raytam1]

I am not able to post this as separate question in TT.Some how it is not giving me chance.

Form 1116 Line a--Basic question.
Line 1 a adjustments -depends on tax rate that  applies to individual case for 'Qualified dividends AND CAPITAL gains' and section 1251 and section 1239 Gains .

Does this  adjustment stipulation covers LTCG on Real Property.?

This is since the documentation mostly it revolves around --Qualified dividends and capital gain Distributions- understanding is LTCG for real property sale will not relate to the above "capital gain distributions'

Many thanks in advance for your answer.

(And I was suggested previously by experts that I may ask CPA. But few CPAs I spoke have not with knowledge of this forum experts--on FTC. experts like y pk ,Mike and Rogge and other experts has better knowledge than many per forums. That is why I am posting here for help.)

[tagteam]

Champ @pk is an expert here.

[pk · Accepted solution]

@raytam1 , your question :

Form 1116 Line a--Basic question.
Line 1 a adjustments -depends on tax rate that  applies to individual case for 'Qualified dividends AND CAPITAL gains' and section 1251 and section 1239 Gains .

Does this  adjustment stipulation covers LTCG on Real Property.?

Yes , please see  form 1116 instructions pages  6, 10,11 etc.   Also you have to consider  Tax treaty between US and Foreign income source country.   My only struggle is  that whereas I see and use the adjustment  factors, I do not understand the derivation thereof i.e. I cannot figure out  why  0.4050 for 10% taxed rate  etc.

But in your particular case of sales gains from foreign Real-Estate  and if any adjustments are required , I believe , TurboTax will do that for you >

Is there more I can do for you ?