Guide to Global Payroll Management - 2020 - D-131

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Appendix D--Federal Forms and Instructions

Instructions for Worksheet B

Line 1. For each separate category, combine the capital gains and losses as follows.
* Combine your foreign source short-term capital gains and losses and enter the result in column (1) or (3).
* Combine your foreign source long-term capital gains and losses and enter the result in column (2) or (4).

Line 2. Complete the Line 2 Worksheet for each column on line 1 with a gain.

Line 4. Enter your net long-term capital loss (if any) from U.S. sources. To determine this amount, subtract your long-term
capital losses from U.S. sources from your long-term capital gains from U.S. sources. Enter the loss (if any) as a positive
amount in column (5). If you don't have a loss, leave line 4 blank and skip lines 5 through 14.
Line 5. Combine the amounts (if any) from columns (2) and (4) on line 2. Enter the result in column (5). If you don't have any
amount entered in either column, enter -0- in column (5).
Line 6. Subtract line 5 from line 4. Enter the result in column (5). If the result is zero or less, leave line 6 blank and skip lines 7
through 14 of this worksheet.
Line 7.
* If you entered an amount in either column (2) or (4) (but not both) of line 3, subtract line 6 from the amount entered in
either column (2) or (4) of line 3. Enter the result in column (2) or (4) on line 7 and skip lines 8 through 12.
* If you entered amounts in both columns (2) and (4) on line 3, combine those amounts and enter the result in column (5) on
line 7.
Line 8. Divide line 3, column (2), by line 7, column (5). Enter the result on line 8, column (2). Divide line 3, column (4), by
line 7, column (5). Enter the result on line 8, column (4). Round off each result to at least four decimal places.
Line 9. Multiply each decimal amount on line 8 by line 6 and enter the results in the appropriate columns on line 9.
Line 10. Subtract line 9, column (2), from line 3, column (2) and enter the result on line 10, column (2). Subtract line 9,
column (4), from line 3, column (4), and enter the result on line 10, column (4).
Line 11. Multiply each amount on line 10 by 0.4054 and enter the results here.
Line 12. Combine line 11, column (2), with line 9, column (2), and enter the result on line 12, column (2). Combine line 11,
column (4), with line 9, column (4), and enter the result on line 12, column (4). Include the amounts on line 1a of the
applicable Form 1116. Skip lines 13 and 14.
Line 13. Multiply the amount on line 7 by 0.4054 and enter the result here in the applicable column.
Line 14. Combine line 6 and line 13 and enter the result here. Include the result on line 1a of the applicable Form 1116.
Line 15.
If you have a:
* Short-term gain shown in column (1) or (3) of line 3, enter the amount of that short-term gain on line 15, column (1) or (3).
* Long-term gain shown in column (2) or (4) of line 3, and line 6 is blank, multiply the amount of each gain by 0.4054 and
enter the result on line 15, column (2) or (4).
* Short-term loss in any column of line 1, complete the Line 15 Worksheet for each column with a loss.
* Long-term loss in column (2) or (4) of line 1, multiply the amount of the loss by 0.4054 and enter the result on line 15 in the
appropriate column.
After you have completed line 15:
* Include line 15 gain amounts on line 1a of the applicable Form 1116.
* Include line 15 loss amounts on line 5 of the applicable Form 1116.

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Instructions for Form 1116 (2019)

D-131
Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020
