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Level 4
March 14, 2021
Question

Form 1116, line 1a (Capital Gain Distributions)

  • March 14, 2021
  • 1 reply
  • 15 views

On Form 1116, line 1a (Gross income from foreign sources), total capital gain distributions (which are not foreign income) from Form 1099-DIV are added to the correct amount of foreign source dividend income from the same Form 1099-DIV. Why is this happening and is there a way to correct? Thank you.

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1 reply

sjrcpa
Level 15
March 14, 2021

You have to tell Lacerte that zero CGD are foreign. Zero = -1.

The software assumes all income from a 1099-DIV with foreign withholding is foreign income unless you tell it otherwise.

The more I know the more I don’t know.
drbdrbAuthor
Level 4
March 14, 2021

Thanks so much! I'm new to Lacerte and finding some challenges with the F1116.  Does Lacerte offer videos or live training specific to this topic? Thank you.

sjrcpa
Level 15
March 14, 2021

You're welcome. I don't know if they offer training on this.

And welcome to the forum.

The more I know the more I don’t know.