Spino, thank you so much for your response.
2) No, you do not need to claim a credit for foreign taxes paid just because you can--but you shouldn't pick and choose, as that could get dicey as far as your intent if the IRS reviewed it.
Thank you, that answers question #3.
3) You don't need to do it account by account, just collect and summarize the information from all the accounts on Form 1116, etc. Taxes are paid by taxpayer, not by account.
Ok, thanks. I'm not filling out Form 1116 manually, but I let Turbo Tax populate it from the 1099-DIVs and it aggregates the accounts per country already from the 1099-DIVs.
At this point the open questions are still #1 and 2:
- Do I enter a net positive capital gain from stock sales of a foreign based company (1099-B) on Part 1, field 1a in that country's column of Form 1116?
- Do I enter a net negative capital gain (aka a capital loss) from stock sales of a foreign based company (1099-B) as a positive number on Part 1, field 5 ("Foreign loss") in that country's column of Form 1116?
