Publication 514: Foreign Tax Credit for Individuals;

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Form 1116 (2003) Page 2. Summary: This is an example of Form 1116 (2003), page 2, which pertains to the text. The line items are completed as follows:

Under “Part III: Figuring the Credit”:

“9. Enter the amount from line 8. These are your total foreign taxes paid or accrued for the category of income checked above Part I” field contains 93

“10. Carryback or carryover (attach detailed computation)” field contains 0

“11. Add lines 9 and 10” field contains 93

“12. Reduction in foreign taxes (see page 13 of the instructions)” field contains 0

“13. Subtract line 12 from line 11. This is the total amount of foreign taxes available for credit” field contains 93

“14. Enter the amount from line 7. This is your taxable income or (loss) from sources outside the United States (before adjustments) for the category of income checked above Part I (see page 14 of the instructions)” field contains 484

“15. Adjustments to line 14 (see page 14 of the instructions)” field contains 0

“16. Combine the amounts on lines 14 and 15. This is your net foreign source taxable income. (If the result is zero or less, you have no foreign tax credit for the category of income you checked above Part I. Skip lines 17 through 21. However, if you are filing more than one Form 1116, you must complete line 19.)” field contains 484

“17. Individuals: Enter the amount from Form 1040, line 38. If you are a nonresident alien, enter the amount from Form 1040NR, line 36. Estates and trusts: Enter your taxable income without the deduction for your exemption” field contains 16,870

“18. Divide line 16 by line 17. If line 16 is more than line 17, enter 1” field contains .0287

“19. Individuals: Enter the amount from Form 1040, line 41. If you are a nonresident alien, enter the amount from Form 1040NR, line 39. Estates and trusts: Enter the amount from Form 1041, Schedule G, line 1a, or the total of Form 990-T, lines 36 and 37” field contains 1,724

“20. Multiply line 19 by line 18 (maximum amount of credit)” field contains 49

“21. Enter the smaller of line 13 or line 20. If this is the only Form 1116 you are filing, skip lines 22 through 30 and enter this amount on line 31. Otherwise, complete the appropriate line in Part IV (see page 16 of the instructions)” field contains 49

Under “Part IV: Summary of Credits From Separate Parts III”:

“31. Enter the smaller of line 19 or line 30” field contains 49

“33. Subtract line 32 from line 31. This is your foreign tax credit. Enter here and on Form 1040, line 44; Form 1040NR, line 42; Form 1041, S credit. Enter here and on Form 1040, line 44; Form 1040NR, line 42; Form 1041, Schedule G, line 2a; or Form 990-T, line 40a” field contains 49