How do I enter capital gains from sale of a property abroad. Do I enter the net proceeds (after the capital gain tax I paid)? How do I claim foreign tax credit? thanks

Forum|Forum|5 years ago
March 14, 2021
2 replies
21 views

Bought pre-sale condo 2014, finished building 2019, sold 2020. Never lived nor rented out.

DavidD66

Level 15

You will report that in the same section in which you report stock and other investment sales. To enter:

Type "Investment sales" in the search window and click Enter
Click on "Jump to Investment sales"
On the page with "Did you sell any investments in 2020?" Answer Yes
Answer "Other" to "OK, what type of investments did you sell?" and click Continue
Enter the name of the person or firm that brokered this sale
On the page with "Now we’ll walk you through entering your sale details" for "What type of investment you sold" Indicate "Other "
Indicate "How did you receive this investment?
Enter the details of the sale, and the interview will walk you through entering the details of the sale

To receive the foreign tax credit, enter "Foreign tax credit" into search and hit enter. The program will guide you through claiming the credit.

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snwong79Author

Level 3

Much thanks!

For the Foreign Tax Credit. Do I pick itemized deduction or take the credit? The capital gains tax I paid was $15K. Thanks!

npierson777

Level 10

You don't need to itemize your deduction to get the credit. Once you're done enter information from your 1099-INT, 1099-DIV and 1099-B forms which includes foreign taxes paid, go to Deductions & Credits to see if you're eligible for the Foreign Tax Credit

You can find more information about that credit here:

Foreign Tax Credit and Other Tax Implications of Foreign Investments

128911

Level 2

I sold a piece of land abroad in 2020 and transferred my entire sale proceeds to my bank account here in USA. Do i have to report this transaction in my tax return,

Would it be the entire amount of transaction or just the gain/ profit.

How do i calculate my gain/ profit.

do i need any supporting documents.

DaveF1006

Level 15

You will report the sale of the land by:

Click on Federal > Wages & Income.
In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other. You will report the Gross Sale proceeds in this section.
Based on what you report in Turbo Tax, Turbo Tax will determine your gain/profit.
You need to save your documents along with your 2020 tax returns but you do not need to send these to the IRS.

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