Colleagues:
I copied information from a 1099-DIV to Screen 12 boxes (1a, 1b, 2a, and 2b). I also had small numbers to input in field 5 (Section 199A dividends) and from box 7 of the 1099 some foreign tax paid.
My Form 1116 is reporting all of the Screen 12 data as foreign source. But it isn't. I assume that I have entered something incorrectly, but I cannot see where or how.
Can anyone help?!
Micah
Choose your own adventure. This is what we get paid the big bucks for.
Depending on materiality:
- Elect not to file the 1116, because then you don't care
- Assume all are foreign
- Look at the dividend detail and pick out all the items that have foreign taxes withheld and assume those are 100% foreign
- Look at the dividend detail and pick out all the items that have ADR in the name and assume those are 100% foreign
- Google every mutual fund to determine the percentage of foreign source income, then multiply
- Ask your client to ask their investment advisor, whose hapless assistant surely has nothing better to do and wouldn't consider just blowing you off
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