I sold a foreign investment property and had a long-term capital loss. Since I am a non-resident in that country, taxes were deducted by the buyer and paid to the country at the time of sale. I will get my refund when I file taxes in the foreign country next year, but since I have been using "cash basis" for reporting foreign taxes, I have shown taxes paid in my 1116.
1. Where and how do I report my long-term capital losses in 1116?
2. Will reporting this loss decrease my foreign tax credit?
Thanks in advance!
