Serbinski Accounting Firms

Nelson, Thank you very much for your educating and help for this forum. You speak from experience. Regarding your response for Gross income versus Net income for 1116, What could be the reason that IRS form and its instruction is referring to word GROSS all over the place without any mentioning to N...

Would you please help with this posting?

In 1116 form, how do we address "Deductible rental real estate loss" entered on Schedule E?

If prior year causes to offset this year rental profit in Schedule E, how this will be address on 1116 form for tax paid to canada?

I appreciate any reply from Forum regarding above questions.

Hi 1- in US foreign tax credit form, there is line for expenses DEFINITELY related to the income. Income source is rental, passive category. In Schedule E, we have depreciation of the property. Is the depreciation an expense DEFINTELY related to the income ? 2- This year, on the rental, I have posit...

Thanks Nelsona What I meant from " In prior years I had losses that all acumulated" is: on my schedule E, line 21 is positive. but I have form 8582 and line 1c from there "Prior years unallowed losses" has some amounts. I am using prior year losses to offset this year profit, the...

from your previous replies, if my line 17 of 1040 is zero , there is no foreign tax credit available in USA

but still I am paying to canada.

The amount i am paying to Caanda, Can I carry over this amount to my next year 1118 US form next year?

Thank you for your reply

even with depreciation in canada, i still have positive income.

to answer to your question for
"Any reason why you did not use the passive loss last year on your 1040?"

in prior years i had losses that all accumulated.

my line 17 of 1040 is zero. I had net positive from rental but I had carryover passive loss from last years that I applied them to my posiitve net

Am I still eligible for US tax credit on tax I am paying to Canada?

In form 1116, there is an entry says:

"Expenses definitely related to the income on line1a"


Is US depreciation amount of rental property I am reporting on schedule E considered an expense for this line in 1116?

Thank you for your reply. The conditions doesn't seem make difference between brokerage and rental. it says 'passive income' . I was also referring to my Canadian tax filing( and not NR6) as a reported document as 'SIMILAR SUBSTITUTE STATEMENTS' If in context of schedule E , my rental is passive, Is...

Hi Based on IRS instruction for form 1116, we may be able to claim the foreign tax credit WITHOUT filing Form 1116 if three conditions are met. 1- passive income is only foreign income 2-creditable foreign taxes are less that $300 3-all the income and foreign taxes paid are report on form like 1099-...

Well,
you replied previously

"I would not worry about this. Fix this years and move on. Since depreciation is recaptured at sale, you will simply have bigger recapture. "


what is fix mean? is fix mean ignore the past and continue with new lower value or fix means something else?

Thank you Nelsona

what you are saying is exactly what I said: don't change the past, continue from depreciating but with 40 yrs instead of 27.5 method

Am I still not understanding your advice? if I a mworng, please correct my statement.

Thank you a lot for your reply I already depreciated more than what I should Based on your advice, I am not going to change prior years. I will start with 40 yrs from this year you mentioned : "If you have depreciated more than you should have, then you will ned to recapture more. This will be ...

I am sure you are trying to mention an important point but it is not clicking for me. My numbers based on 2011 , last year is: depreciable basis: 121k total of depreciations took based on 27.5 years in last 8 years : 30k ( I reported ) total of depreciations took based on 40 years in last 8 years : ...