Form 1116 Line 1a : Question for Long term captial gain

[hp100]

I received the inherited house in the foreign country and paid a tax for the long term capital tax in foreign country and USA.  I used TT, got the foreign tax credit.  I looked very carefully the line 1a, could not figure out.  It was subject to LTCG tax 15% and 20%.

Simply 1a is from Sch D tax wks line 30 (15%) x 0.4054 plus line 33 (20%) x 0.5405.  Then this is about 4.5% lower than 1a from TT. I had ver small expense and very small foreign tax paid on the dividends.  These are so small, I do not think affecting like 4.5% difference.

How to figure out 1a?

[Anonymous_]

@pk ?

[pk]

@hp100 , please tell me more about the situation.  As I understand  from your post:

(a) you a US person ( citizen/ Green Card/ Resident for tax purposes )  own realestate in a foreign country ( which country ? ).

(b) you paid  gains taxes  to the foreign country ( is it gain on transfer of the property  or  did you dispose off the property ? )

(c)  recognized the property ( disposal ) on US taxes  and took credit for foreign taxes paid 

(d) review of the return raises question as to the  tax rate used .

As you can see  from the above , I am not sure which scenario we are talking about the answer obviously would depend of the exact  facts and circumstances  ( also note that the basis for gain computation in different countries may not be the same as in the USA).

So please tell me more about the situation first and then I can be more specific about the answer --please 

pk

[hp100]

I figured out partly.  To get 1a, multipliers 0.4054 and 0.5405 should be used, but many comments in this community used some other multipliers.   I have two passive incomes, two foreign taxes.  Foreign tax was a long term capital gain.  If I have one country, it was a correct vaule in 1a.  If there are two counties, then it is off.