Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Lacerte Form 1116 - Why it picked up US sourced capital distribution?

ellie036
Level 1

 

 

Hello everyone,

My client has foreign dividend of $1,867 and capital distribution of $75,701 from US source.

Why would Lacerte picked up the US source $75,701 to calculate the Net Foreign Source Capital Gain Distributions?

Please advise!

Thanks!

 

Screen Shot 2022-04-14 at 5.15.36 AM.png

0 Cheers
1 Best Answer

Accepted Solutions
itonewbie
Level 15

The most likely culprit is Screen 12.

Check your entries under the Foreign Tax Credit section and make sure you have entered -1 for the line "Precentage foreign (.xxxx) or amount if different - Capital Gain Distributions".

If you have input for the other lines (i.e. Total Ordinary Dividends and Qualified Dividends), Lacerte (and ProConnect Tax for that matter) tends to treat a blank as 100% and the way to avoid that is to enter the all-powerful and magical -1.

If you already have -1 for CGD but yet that isn't fixed, check Screen 35.1.  Under the Gross Income Within Country section, make sure you have the correct adjustments and/or overrides for CGD.

 

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

3 Comments 3
itonewbie
Level 15

The most likely culprit is Screen 12.

Check your entries under the Foreign Tax Credit section and make sure you have entered -1 for the line "Precentage foreign (.xxxx) or amount if different - Capital Gain Distributions".

If you have input for the other lines (i.e. Total Ordinary Dividends and Qualified Dividends), Lacerte (and ProConnect Tax for that matter) tends to treat a blank as 100% and the way to avoid that is to enter the all-powerful and magical -1.

If you already have -1 for CGD but yet that isn't fixed, check Screen 35.1.  Under the Gross Income Within Country section, make sure you have the correct adjustments and/or overrides for CGD.

 

---------------------------------------------------------------------------------
Still an AllStar
ellie036
Level 1

Thank you so much, itonewbie! 

It solved the problem! 

0 Cheers
itonewbie
Level 15

NP, @ellie036. Have a great day!

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers