5752

[#1]

The following diagnostic is generating:

{StateName} An adjustment to the income reported on line 1 of Form 1116 may be necessary if the taxpayer has foreign capital gains and losses. Please refer to Form 1116 instructions for more details.

[sjrcpa]

And for OP, if there are no foreign capital gains, ignore the diagnostic.

@strongsilence the adjustment applies to long-term capital gains and qualified dividends because both are taxed at lower rates. I have read the instructions when I need to, but your snippet looks fine.