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Deductions & credits
Here is the proper way to report this.
- Wages and income
- Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) or investment income if working in Turbo Tax Desktop
- Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’
- The first screen will ask if you sold any investments during the current tax year. This includes any sale of real property 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
- What type of investment other
- Proceed through the interview until finished with this section.
To claim the Foreign Tax Credit.
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- As you go through the screens, when it asks "Tell Us About Your Foreign Taxes" select none of these apply.
- When it asks if you wish to take the deduction and credit, take the credit.
- Continue through until you reach a screen that says "No other income or expenses" Say no
- Continue through until it asks the income type, say Passive Income
- Next add a country pick India
- Other Gross Income say Sale of Personal Residence and the Gross Amount of the sale
- Continue through the interview until it asks for the foreign taxes you paid, here record the amount. Report this as other income.
- Now you are done reporting the foreign taxes. Just keep going through the section without making any more entries. You will have finished reporting your gross income from the sale and the foreign taxes paid.
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March 14, 2025
6:21 AM