Form 1116, line 1a (Capital Gain Distributions)

[drbdrb]

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.

[sjrcpa]

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.

[drbdrb]

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]

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

And welcome to the forum.