First I want to make sure that you know that you h...
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I sold a land in India ,made LT Gain.I am US citizen, WH 20 % for taxes. sale in Sche D-Stock,bonds other. Where do I report the tax WH? Foreigntax credit?Please advise

 
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New Member

I sold a land in India ,made LT Gain.I am US citizen, WH 20 % for taxes. sale in Sche D-Stock,bonds other. Where do I report the tax WH? Foreigntax credit?Please advise

First I want to make sure that you know that you have to use the exchange rate at the date of purchase and then the exchange rate on the date of sale , and the difference in the USD amount between ex rate on the date of purchase and ex rate on the date of sale determines the gain/loss on the property for US taxes.

There is also a possible mortgage gain if you settled a mortgage with the sale of this property.  This gain would be considered ordinary income.  https://www.ustaxfs.com/foreign-mortgage-repayment-exchange-rate-gain/

To report your Indian tax paid on your gain for foreign tax credit:

  1. Enter foreign tax credit in the search box at the top of the page and click the Jump to link
  2. Click 'Yes" you paid foreign taxes
  3. Click through the screens regarding foreign interest and dividends
  4. Click yes that you have reported all your foreign income already in TurboTax
  5. Click that you want to take a credit
  6. Answer question about the Simplified Limitation Election
  7. Choose income type land sale  - it will be Passive Income
  8. Add India as the country
  9. Enter description -Indian Land sale
  10. Enter Income amount that you previously reported in TurboTax- Enter Total Proceeds not the gain
  11. Enter your taxes you paid on your foreign income in the box "Other income"
  12. Continue through ALL the foreign tax credit screens until done.



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