Question

How do we calculate the Adjusted basis of investment assets generating foreign income on FORM 1116 ?

Forum|Forum|4 years ago
April 11, 2021
1 reply
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There is a dividend income and interest income on saving accounts that I have from the foreign country and because of this TT ia asking me to provide Adjusted basis of investment assets generating foreign income and Adjusted basis of total investment assets on FORM 1116 . Can someone help me how to calculate this ?

TurboTax Premier Online

R

rogge1722

It appears that you have investment interest expense that appears in Schedule A line 9. The screenshot shows the data for an example on p.16 , line 4b of the form 1116 instructions. The amount in 4b1a is the amount from Schedule A, line 9. The user calculates (b) and (c). TT calculates the remaining entries.

S

sweerkaulAuthor

@rogge1722

I do not have any investment interest expense (4b1a) .

I have a 1099-DIV from a US brokerage company ( E-trade) which shows a dollar amount (e,g 500 $) as Foreign tax paid.

Apart from this 1099-DIV , I have interest income (e,g 500 $) from Saving Bank accounts in foreign country . For this the TT is asking me to calculate Adjusted basis of investment assets generating foreign income (4b1b)

and Adjusted basis of total investment assets (4b1c) ?

Can you help me how can I calculate that ?