prakhush
New Member

Can I enter the Foreign tax withheld on the sale of Mutual Funds in India under the net proceeds box (Federal taxes withheld) in the MutualFunds section? (No box 6 there)

The Mutual funds section doesn't have an option to report that the profit is from a foreign location and there is no box 6 to report foreign taxes like in DIV and INT sections. Please advise how to enter this in TurboTax

pk
Level 15
Level 15

Deductions & credits

Prakhashji,   I  would suggest (a) wait till the tax in India is finalized  or else you will have to file an amended return to match  the final figures and (b) consider the foreign paid tax as sales expense just like the commission etc, you pay the broker -- use the exchange rate of the date of posting or the yearly average ( published by US Treasury ).  Hope this helps

 

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prakhush
New Member

Deductions & credits

So to confirm, Net proceeds will be net of the taxes withheld? I don't anticipate on paying any other tax in India so this should be the final number
pk
Level 15
Level 15

Deductions & credits

yes -- that is how I would handle it