You would report the same way you would report the sale of stock in the US, only you wont have a Form 1099-B to enter. To do so in TurboTax, while logged in to your return,
- Click on Search
- In the Search Window type 1099-B
- Click on Jump to 1099-B
- Click + Add an Account (if the account you were trying to download is showing, delete it first)
- Answer No to "Did or will you receive a 1099-B form or brokerage statement for these sales?"
- Continue and report the sale of your investment sales abroad
If you pay foreign taxes on the foreign stock transaction, you will be allowed an offset for these foreign taxes on your US tax return. If you take a foreign tax credit, your US tax liability will be reduced by the amount of taxes that you would have paid if the transaction took place in the US (see this link Claim Foreign Tax Credit). If you take a foreign tax deduction on Schedule A, you will be allowed to deduct the full amount of the foreign taxes paid but you will need to itemize (which could limit your ability to take the full deduction). The TurboTax software will help you determine which of these options will lower your overall tax liability.
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