how to claim (deduct) foreign tax paid on foreign sock sale from US capital gain tax

Hi Dear,

 

I would greatly appreciate some help on this.

 

I live in the US, last year, I sold a foreign company stock in that country and also paid local tax in that country, how do I file foreign tax sale ( I saw TT help saying just treat as a regular stock sale)

AND

how to deduct the local tax I have paid in that country from my capital gain tax paid in the US?  (should I use itemized or tax credit?)

 

TIA

Dave

Get your taxes done using TurboTax

You could put it in as a 1099-B even though you don't actually have a 1099-B and the foreign tax paid as a credit under less common income.

You can also report both as:

  • Wages and Income
  • Less Common Income
  • Miscellaneous

other reportable income.jpg
Someone else may have another solution.  


Get your taxes done using TurboTax

Thanks for the information but I did stock sale, my understanding is that it is part of capital gain, not treated as regular income...

Get your taxes done using TurboTax

In that case, use the 1099-B as if you had been issued a 1099-B and mark it for capital gain.