Why does ProSeries use the wrong data for Form 1116 line 3e?

Forum|Forum|4 years ago
October 6, 2021
3 replies
29 views

The IRS instructions for Form 1116 indicate that line 3e should include " ... capital and ordinary gains (before subtracting any losses) ...", but ProSeries cross-references Line 3e to Form 1041 Line 9 (which provides the figure after deducting losses. This is resulting in the foreign tax credit being too high.

I can override line 3e, but I shouldn't have to when it seems so clear that ProSeries has an error.

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

Its generally best to keep all related posts in the original discussion thread.

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/should-form-1116-line-3e-include-net-or-gross-capital-gains/00/177618

@1569 you may want to have someone look into this?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

A

Anonymous

Thanks for reporting. We'll look into this.

D

davidwashington

Level 4

I agree. I review software almost every year looking for a better product. This is one area ProSeries, and even Lacerte are weak. ProSeries, as you say line 3e does not pull correct information.

CCH products and Drake DO CALCULATE correctly.

The other line to watch is line 18. Taxable Income iwth the deduction for your exemption. Here is pulls total income, and does NOT calculate Taxable Income.

ProConnect likes to think that if you have foreign qualified dividends, it extends to capital gain distributions, when this may not always be the case. (disappointed, I thought ProConnect would be a win. Bought 50 (in addition ProSeries Prof), and only using 6. (Cloud is too mouse intensive; keyboarding is much faster)

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