Form 1116 Foreign Tax Credit 2005. Summary: This is an example of Form 1116 (2005) with items included as described in the text. Additionally, these line items
are
completed:
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“Name” field contains Robert Smith
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“Identifying number as shown on page 1 of your tax return” field contains 000-00-0000
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“k. Resident of (name of country)” field contains Country X
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Under
“Part I: Taxable Income or Loss From Sources Outside the United States (for Category Checked Above): Deductions and Losses”:
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“3a. Certain itemized deductions or standard deduction (see instructions)” field contains 940
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“3c. Add lines 3a and 3b” field contains 940
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“3d. Gross foreign source income (see instructions)” field contains 5,000
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“3e. Gross income from all sources (see instructions)” field contains 110,400
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“3f. Divide line 3d by line 3e (see instructions)” field contains .0453
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“3g. Multiply line 3c by line 3f” field contains 43
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Under
“Part II: Foreign Taxes Paid or Accrued”:
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“Country A: Credit is claimed for taxes (you must check one): (m) Paid” checkbox checked
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“(o) Date paid or accrued” field contains 12-31-05
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“(p) Foreign taxes paid or accrued in foreign currency: Dividends” field contains 900
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“(r) Foreign taxes paid or accrued in foreign currency: Interest” field contains 100
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“(t) Foreign taxes paid or accrued in U.S. dollars: Dividends” field contains 450
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“(v) Foreign taxes paid or accrued in U.S. dollars: Interest” field contains 50
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“(x) Total foreign taxes paid or accrued (add columns (t) through (w))” field contains 500
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“8. Add lines A through C, column (x). Enter the total here and on line 9, page 2” field contains
500
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