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March 25, 2025
Question

Add foreign taxes in capital gain form

  • March 25, 2025
  • 2 replies
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How can I add foreign taxes in my capital gain income please ? When I indicate "With long-term sales section, did not received 1099-B form" and I check "other boxes", I cannot see it.

When I do the same thing for my dividend income, the box 7 shows up and I can write the number.

I would like to indicate my foreign capital gain tax and especially flag this income as foreign based.

 

Thank you 🙂

    2 replies

    March 25, 2025

    @jean_sim3000  for   claiming foreign tax credit ---

    (a) You have to use form 1116 --- you do this by  first click  "Deduction & Credits " tab;  then  from the list of credits & deductions , choose  "Foreign Tax Credit".  This will then walk you through filling out the form 1116

    (b) Which country was the  sold property  in ?

    (c) Are you a US person ( citizen/GreenCard / Resident for Tax purposes ) for the tax year ?

    (d) How was the property used   -- ( your home / personal use prop or income /rental )?

     

    Is there more I can do for you ?

    March 25, 2025

    You do not enter foreign tax paid when you report capital gains.  You enter the foreign tax paid as follows: 

     

    • From Tax Home: 
    • Click on Search and enter "Foreign Tax Credit"
    • Click on "Jump to foreign tax credit"
    •  On the landing page, click on Continue
    • Continue to report your foreign tax paid and claim the foreign tax credit
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