From
the perspective of the Internal Revenue Service, if you sell your foreign stock
at a gain, you will have to pay tax in the same
manner as if you had taken a profit on an American stock.
You would also be able to claim a Foreign
Tax Credit
To enter the sale of
a capital asset in TurboTax, log into your tax return (for TurboTax Online
sign-in, click Here and click on
"Take me to my return") type "investment
sales" in the search bar then select "jump to investment sales". TurboTax will guide you in
entering this information.
You can enter it just as if you received a 1099-B but if this is confusing then do the following steps.
- The first screen will ask if
you sold any investments during the current tax year (This includes any
asset held as an investment property so answer “yes” to this question)
- Since you did not receive a
1099-B, answer “no” to the 1099-B question
- Choose type of investment you
sold - select everything else
- Some basic information:
- Description –
Foreign stock name and number of shares
- Sales Proceeds – Your net
proceeds from the sale
- Date Sold – Date you sold
the property
- Tell us how you acquired the
property - Purchased
- Enter the your cost basis-
Original cost plus expenses
- Date
acquired Original date of purchase
To enter a foreign
tax credits in TurboTax, log into your tax return (for TurboTax Online sign-in,
click Here and click on "Take
me to my return") type "foreign tax
credit" in the search bar then select "jump to foreign tax credit". TurboTax will guide you in
entering this information
