Form 1116 Foreign Tax Credit 2012

Summary: This is an example of Form 1116 (2012) with items included as described in the text. Additionally, these line items are completed:

Name field contains Robert Smith
Identifying number as shown on page 1 of your tax return field contains 000-00-0000
Use a separate Form 1116 for each category of income listed below. See Categories of Income in the instructions. Check only one box on each Form 1116. field contains check in box a, Passive category income
f. Resident of (name of country) field contains Country X
UnderPart I: Taxable Income or Loss From Sources Outside the United States (for Category Checked Above)::
- 1a. Gross income from sources within country shown above and of the type checked above (see instructions) field contains 5,000
- 3a. Certain itemized deductions or standard deduction (see instructions) field contains 1,500
- 3c. Add lines 3a and 3b field contains 1,500
- 3d. Gross foreign source income (see instructions) field contains 5,000
- 3e. Gross income from all sources (see instructions) field contains 140,500
- 3f. Divide line 3d by line 3e (see instructions) field contains .0356
- 3g. Multiply line 3c by line 3f field contains 53
- 4a. Home mortgage interest (use the Worksheet for Home Mortgage Interest in the instructions) field contains 650
- 6. Add lines 2, 3g, 4a, 4b, and 5 field contains 703
- 7. Subtract line 6 from line 1a. Enter the result here and on line 15, page 2 field contains 4,297
UnderPart II: Foreign Taxes Paid or Accrued:
- Country A: Credit is claimed for taxes (you must check one): (h) Paid checkbox checked
- (j) Date paid or accrued field contains 12-31-12
- (k) Foreign taxes paid or accrued in foreign currency: Dividends field contains 900
- (m) Foreign taxes paid or accrued in foreign currency: Interest field contains 100
- (o) Foreign taxes paid or accrued in U.S. dollars: Dividends field contains 450
- (q) Foreign taxes paid or accrued in U.S. dollars: Interest field contains 50
- (s) Total foreign taxes paid or accrued (add columns (o) through (r)) field contains 500
- 8. Add lines A through C, column (s). Enter the total here and on line 9, page 2 field contains 500

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