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Calculation of Form 1116, line 3e

Gross income is all income received in the form of money, property, and services that isn't exempt from tax. It's the total income received before allowable deductions. For a business, gross income is the total receipts minus the cost of goods sold.
A not required statement prints that details how the gross income for Form 1116, line 3e, is calculated. Gross income includes the following items:
  • Wages, salaries, tips
  • Taxable interest
  • Dividends
  • Taxable refunds of state and local taxes
  • Alimony received
  • Gross business income from Schedule C, line 7
  • Capital gains from Schedule D. Only gains are included. Losses aren't netted against gains.
  • Capital gain distributions reported on Schedule D
  • Gains on sale of business property from Form 4797. Only gains are included. Losses aren't netted against gains.
  • Taxable IRA distributions, pensions, annuities, and Social Security benefits
  • Gross rental income from Schedule E
  • Gross royalty income from Schedule E
  • Taxable net income from an estate or trust (Schedule E, line 37)
  • Income from a REMIC reported on Schedule E, line 38
  • Gross farm rental income from Form 4835, line 7
  • Farm income from Schedule F, line 9
  • Distributive share of gross income from a partnership
  • Pro rata share of gross income from an S Corporation
  • Unemployment compensation
  • Other income reported on Form 1040 that isn't reported with any of the previous items
  • Total gain on sale of home even if part or all of the gain can be excluded or postponed
  • Foreign earned income excluded on Form 2555

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