All Posts

I had a $100K capital gain on the sale of a foreign rental property. As I am not considered a resident of that country, I paid around $32K in CGT to that country (Australia). I expected to get most of the US CGT ($15K - 15%) covered by a FTC, but the FTC only credits me around $8K. Add to that a $3K Net Investment Tax, I'm effectively paying over $10K in US tax on this CG.   In doing my US taxes, I reported the CG in "Sale of Business Property" section. This ends up in Schedule D. In the Foreign Tax section, I report the gain as passive income and the CGT paid to Australia as Foreign taxes on other income.  To the "Any foreign source qualified dividends or long term capital gains" question, I report the gain in "Foreign qualified dividends and l.t. capital gains". I do not the tick the "some of my foreign source capital gain are unrecaptured..". I do not enter any more information in the the pages that follow.   Looking at form 1116, my $100K CG gets multiplied by .4054 (which feels a little unfair given that this based on the 37% tax bracket whereas my highest tax bracket is only 24%). Therefore my gross foreign income is only "$40,500" which gets reduced to $37K by deductions. I have around $100K of wages income, so line 18 is $37K and line 18 is $140K, meaning line 19 ends up at .26. With a tax burden of $31K, I only end up with $8k credit.   Have I missed something or should I be doing something different?   I was really expecting more of tax credit here and wasn't expecting to pay over $10K in additional tax to the IRS.   Thanks, Stephen

When I get to the screen on 2025 TurboTax Premier 2025 Desktop that asks "Did you have crypto, nft's, or other digital assets?" and I indicate "Yes" and then click "Continue", it takes me to a display of our entire 2025 Income and then to our Deductions and Credits section. It gives me no opportunity to enter information from my Form 1099-DA. Supposedly, when I start TurboTax each day on my desktop, it installs all the latest updates to the current software. I am guessing that other people can add 1099-DA information manually, so how do I do that when I see no path forward? Thank you.

I have a 1099-R from my standard IRA which shows Box 1 (gross distribution) - $14,000 Box 2 (taxable amount) - $14,000 2b (Tax not determined) - checked 4 (tax withheld) - $0 7 (distribution code) - 2 IRA/SEP/SIMPLE - checked The $14,000 was all funded post-tax from my savings. $7000 from 2024 and $7000 form 2025. IRA and Roth IRA were created at the same time to put money in and immediately convert before gains. I walked through the online questions checking it was a Roth IRA conversion for the full amount. I have gone through the later questions about the non-traditional contribution, but it only asks about 2024 and automatically pulls in the $7000 that I listed last year. There is no question about the basis or if the IRA was funded post tax. If I select that it was moved to another IRA instead of a Roth IRA, my taxes due drops because it isn't considering it a taxable event. But I need to set it the Roth conversion, since that is what it was. However I also need to be able to enter that it was all post-tax dollars being rolled over. What am I missing?