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Here is the procedure to obtain the foreign tax credit for foreign taxes paid on foreign capital gains/losses. It is assumed that the reporting of all income including foreign capital gains/losses for U.S. tax purposes has been completed and the next step is to obtain foreign tax credit for foreign taxes paid using form 1116.   Some preliminary work has to be completed. Download the “2025 Instructions for Form 1116” and “Pub 514”. Open the f1116 instructions and go to page 10. Under the heading “Adjustments to foreign capital gains and losses,” you will be using either worksheet A or B or the worksheet in Pub 514. The instructions will guide you to determine which worksheet to use. Whichever worksheet is used, after completion, you will have the amount to insert into f1116 line 1a if there is a gain or line 5 if there is a loss.   Next go to the foreign tax credit interview. Herein is a screen by screen presentation of a simplified scenario whereby the only income for foreign tax credit is the foreign capital gains. 1. Foreign Tax Credit      Yes 2. Before We Begin     Yes 3. Foreign Taxes     Continue 4. Tell Us About Your Foreign Taxes     Continue 5. Foreign Taxes     Continue 6. Do You Want a Deduction or Credit?      Credit 7. Reporting Foreign Taxes Paid     Continue 8. No Other Income or Expenses     No 9. Completing Forms 1116    Continue 10. Foreign Tax Credit Worksheet    Continue 11. Choose the Income Type     Make the selection then Continue 12. Country Summary    Add a country. 13. Country Name      Select from the list 14. Other Gross Income-Country        If there is a gain from the worksheet:       In the description, enter “ Cap. Gains.”      Enter the amount from the worksheet. 15. Definitely Related Expenses       Enter any applicable amount. 16. Foreign Losses     If you had a net foreign loss from the worksheet,     enter it here. 17. Foreign Taxes Paid       Enter the amount 18. Country Summary     Done 19. Any Foreign Source Qualified Dividends or Long Term Capital Gains?        Here, Long Term Cap. Gains refers only to capital gain distributions       from a 1099-DIv. Continue thru the remaining screens until finished.