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June 6, 2019
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Receive mining royalty income from Canada. Taxes paid to Canada. Do we report the royalty in Schedule E, OR enter it as other income when completing Foreign Tax credit.

  • June 6, 2019
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Best answer by Rainman12

Foreign royalty income goes on Sch E first, then FT Credit via Form 1116 is entered later. "You can't take a credit for something that never existed" ... 

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Rainman12
Rainman12Answer
Employee
June 6, 2019

Foreign royalty income goes on Sch E first, then FT Credit via Form 1116 is entered later. "You can't take a credit for something that never existed" ...