You should record the capital gains as well as the tax paid overseas. You need to record the tax paid in order to get a tax credit.
o qualify for the tax credit you will need to meet the following requirements:
- The foreign tax must be imposed on you.
- You must have paid or accrued the tax.
- The tax must be the legal and actual foreign tax liability.
- The tax must be an income tax (or a tax in lieu of an income tax)
The TurboTax program will make the necessary calculations for you.
If you earned income outside of the U.S., you need to report the income. Here's a TurboTax link with more information.
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