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):”:

“1a. Gross income from sources within country shown above and of the type checked above (see page 14 of the instructions:” field contains 5,000

“3a. Certain itemized deductions or standard deduction (see instructions)” field contains 940

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

“3d. Gross foreign source income (see instructions)” field contains 5,000

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

“3f. Divide line 3d by line 3e (see instructions)” field contains .0453

“3g. Multiply line 3c by line 3f” field contains 43

“4a. Home mortgage interest (use worksheet on page 14 of the instructions)” field contains 587

“6. Add lines 2, 3g, 4a, 4b, and 5” field contains 630

“7. Substract lines 2, 3g, 4a, 4b, and 5” field contains 4,370

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 12-31-07

“(k) Foreign taxes paid or accrued in foreign currency: Dividends” field contains 900

“(m) Foreign taxes paid or accrued in foreign currency: Interest” field contains 100

“(o) Foreign taxes paid or accrued in U.S. dollars: Dividends” field contains 450

“(q) Foreign taxes paid or accrued in U.S. dollars: Interest” field contains 50

“(s) Total foreign taxes paid or accrued (add columns (o) through (r))” field contains 500

“8. Add lines A through C, column (s). Enter the total here and on line 9, page 2” field contains 500