Help with Form 1116

Forum|Forum|2 years ago
March 28, 2024
3 replies
14 views

Client has a loss from his rental property in Germany. Paid Foreign Tax.

How do I show this on Form 1116 or should I put it on Form 1116 since it was a loss/

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T

Terry53029

Intuit Community Champion

You are saying your client had to pay Germany income tax with no income? Glade I don't live there

dascpa

Level 11

Form 1116 is for foreign taxes paid or accrued. If -0-, we don't use this form. If paid or accrued then we report both the taxes paid and the foreign based income.

D

DaveliasAuthor

Level 3

Client shows a loss from the farm AFTER claiming the depreciation.

Germany taxed the income before any depreciation was claimed.

Do I input the negative number on Form 1116?

sjrcpa

Level 15

If there was a loss, are you sure this is a creditable income tax and not another kind of tax?

Clearing that hurdle - isn't there a way to link the rental property to the 1116? There won't be a credit since no double taxation but you would get the benefit of the carryback/carryover.

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

sjrcpa

Level 15

Just saw your post re the farm. 1116 wants gross foreign income and then deductions directly attributable to that income.

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

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