Form 1116 Foreign Tax Credit 2007. Summary: This is an example of Form 1116 (2007) 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

“f. Resident of (name of country)” field contains Country X

Under “Part I: Taxable Income or Loss From Sources Outside the United States (for Category Checked Above): Deductions and losses”:

“1a. Gross income from sources within country shown above and the type checked above (see page 14 of the instructions:” field contains 14,300

“2. Expenses definitely related to the income” field contains 217

“3a. Certain itemized deductions or standard deduction” field contains 940

“3c. Add lines 3a and 3b” field contains 940

“3d. Gross foreign source income (see instructions)” field contains 100,000

“3e. Gross income from all sources (see instructions)” field contains 110,400

“3f. Divide line 3d by line 3e (see instructions)” field contains .9058

“3g. Multiply line 3c by line 3f” field contains 851

“4a. Home mortgage interest expense (use worksheet on page 14 of the instructions) field contains 1,679”

“6. Add lines 2, 3g, 4a, and 5” field contains 2,747

“7. Substract line 6 from line 1a. Enter the result here and on line 14, page 2” field contains 11,553

Under “Part 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 12-31-2007

“(n) Foreign taxes paid or accrued in foreign currency: Other foreign taxes paid or accrued” field contains 54,800

“(r) Foreign taxes paid or accrued in U.S. dollars: Other foreign taxes paid or accrued” field contains 27,400

“(s) Total foreign taxes paid or accrued (add columns (o) through (r))” field contains 27,400

“8. Add lines A through C, column (s). Enter the total here and on line 9, page 2” field contains 27,400