I sold mutual funds in India. How do I reflect that in TurboTax as I dont have a 1099-B. TurboTax keeps saying that I need to send a copy of 1099-B to IRS ?

[DoninGA]

You are not required to have a Form 1099-B for an asset sale.

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Under Investment Income
• On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

On the screen Did you sell stocks, mutual funds, bonds, or other investments in 2019? click on Yes

On the screen OK, what type of investments did you sell? click on Other and then on Continue

[mrkprasanth]

I have the same question in 2023.Iam hearing confliciting answers on how to report gains from Indian mutual fund sale.Should this be reported under miscllenous income or can I report this under stocks and mutual funds sales (same section where I report sales for US stocks and mutual funds).Asking because I have some capital losses where I can offset this gain if reported in the same section as US stocks and mutual funds

[DaveF1006]

Yes, this can be reported under stocks and mutual funds sales. Follow the steps as prescribed by MargaretL in the following Turbo Tax post. 

1. Federal Taxes
2. Wages and Income
3. Scroll down to Investment Select Stocks, Mutual Funds, Bonds, Other - select No to 1099-B question, No to Financial Institution and enter name of your foreign institution.  Follow the prompts. You will able to enter your sale information. This will result with all your mutual funds reported on its respective form and Schedule (form 8949 and Schedule D)

@mrkprasanth 

[mrkprasanth]

Thanks Dave.I do not see a question "select No to 1099-B question" in the turbotax online for 2023.Is there any other place where I need to report as Indian brokerages doesn't issue form 1099-B

[mrkprasanth]

Also doing some research online came to learn today that these mutual funds in india are mostly treated as PFIC.Can we still report these under stocks,mutual funds section with the capital gains reported there?

[AmyC]

Yes.

[Chuckles960]

I am not sure if the answers being given are correct. Foreign mutual funds are considered PFICs, and I am required to report the foreign MF sale on form 8621 part IV.  I know TT does not support form 8621; but the form 8621 instructions say the proceed of sales must be reported as ordinary income.

This means the gains are taxed as income. In fact they are LTCG, but if I report them as suggested here, then they are doubly taxed (once as income, once as LTCG).

Obviously I (and other posters) would want to report them as LTCG....but how?

[DaveF1006]

It depends. Did you make a Market-to Market election to change the character of your  gains from capital gain to ordinary income or to change your capital loss to a ordinary loss.  If you did not make this election, you won't fill out Part 1V of 8621. This is something that day traders normally do to take advantage of daily fluctuations in the market place  

If you did make this election in the beginning of the year, then you would need to report this as ordinary income or loss, on a 1040 rather than a LTCG. If you did not make the Market-to-Market election in the beginning of the year, You will still report your sale as a LTCG on your return.

Day Traders choose this election because they are not focused on profits from dividends, interest or capital appreciation. A big advantage to this is that since all positions are priced to year-end market prices, there are no wash sales to calculate or report. It also accelerates recognition of all gains or losses that had been deferred, but eliminates the opportunity to time the gain or loss in future years.

@Chuckles960