DaveF1006
Expert Alumni

Get your taxes done using TurboTax

Yes, this is a two-pronged process.  To report the sale of her holdings.

 

  1. Open or continue your return (if it's not already open
  2. Go to federal
  3. Wages and income
  4. Investment Income
  5. Stocks, Cryptocurrency, mutual funds etc.
  6. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?.
    • If you land on Your investment sales summary, select Add more sales
  7. On the OK, what type of investments did you sell? screen, select Stocks, Bonds, Mutual Funds, then Continue.
  8. When asked how you want to enter your 1099-B, select I'll type it myself.
  9. Answer the questions until you can select Enter sales section totals. indicate that you will enter the sale one sale at a time. .

You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your supporting documentation for details about the sale.

 

To claim the Foreign Tax Credit:

 

  1. Go to Federal
  2. Deductions and credits 
  3. Estimate and other taxes paid 
  4. Foreign Tax Credit>start or revisit
  5.  Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice.
  6. The first that you will be asked is what category of income is it, you will say Passive income.
  7. Next screen will say Country Summary, select add a country 
  8. When it says Other Gross Income - XXXX, Here you put in the Gross Amount of the sale your were taxed on. If you were taxed strictly on the proceeds, enter that amount. If you were taxed on the captial gain, you would enter that here.
  9. Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - XXXX, here is where you record the amount paid under Foreign Taxes.
  10. Finish out the section. 
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