I have a similar situation for tax year 2024, but for India.
I am an US citizen and resident of California. I sold a piece of land in India in July 2024. The Indian tax authorities deducted a hefty tax at source (a.k.a TDS, Tax Deducted at Source), from my sale proceeds @~24%. This is kinda a witholding tax to be adjusted against my Indian Tax Return (a.k.a ITR) . India's fiscal year runs from April 1 to Mar 31, so I will file my ITR on or after April 1, 2025 and expect to get a refund out of my TDS.
In a post (https://ttlc.intuit.com/community/taxes/discussion/re-reporting-capital-gains-on-sale-of-land-in-ind...), I have been advised..."You will have to prepare your federal return, then your California return to determine that tax paid. Then you will return to the federal portion to include that additional tax." and was pointed to this thread.
I lived the whole year in California as an US citizen, but I sold a property in India and made some Capital Gains income. Therefore, I have both US income from salary, dividends, interest, investments etc. PLUS India Capital Gains, on which I have paid Indian taxes. I understand that I can claim credit on my India taxes, but I can't understand how to separate out the California taxes for my Indian Capital Gains, since my California income will include both US income and Indian income.
@ThomasM125 says
- "Line 1(a) of Form 1116 is where you report your foreign income." Ok, so I report the Indian Capital Gains in Line 1(a) of Form 1116
- "The California tax paid on your Canadain income..." How do I get that because my State tax will include BOTH US income and Indian Income (capital gain). How do I know how much is my California tax ONLY on my Indian income, which I will reported in Part II of Form 1116.
@Jim Aitken, @ThomasM125 can you pls help?
Thanks in advance.
