You will report that in the same section in which you report stock and other investment sales. To enter:
- Type "Investment sales" in the search window and click Enter
- Click on "Jump to Investment sales"
- On the page with "Did you sell any investments in 2020?" Answer Yes
- Answer "Other" to "OK, what type of investments did you sell?" and click Continue
- Enter the name of the person or firm that brokered this sale
- On the page with "Now we’ll walk you through entering your sale details" for "What type of investment you sold" Indicate "Other "
- Indicate "How did you receive this investment?
- Enter the details of the sale, and the interview will walk you through entering the details of the sale
To receive the foreign tax credit, enter "Foreign tax credit" into search and hit enter. The program will guide you through claiming the credit.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
You don't need to itemize your deduction to get the credit. Once you're done enter information from your 1099-INT, 1099-DIV and 1099-B forms which includes foreign taxes paid, go to Deductions & Credits to see if you're eligible for the Foreign Tax Credit
You can find more information about that credit here:
there was no 1099 issued as the capital gain tax I paid was for sale of a property in the Philippines and the government imposed that tax during the sale. I thought I have to file form 1116?? Thanks!
Yes, in that case you'll probably need to file Form 1116. To access the form in TurboTax:
- Search for foreign tax credit and select the Jump to link in the search results.
- Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
- Follow the instructions to get the credit or deduction.
In most cases, taking the credit works out better than the deduction. We'll help you decide which one's best for you when you go through this section.
If you choose to take the credit, TurboTax will attach Form 1116, Foreign Tax Credit to your tax return.
For form 1116. Do I enter the sales proceeds under 1a = the Gross Income from that country? For example $200,000 if that's the sales proceeds. Or do I enter the net gain amount (sale minus cost)? Thanks!
Yes, the term "gross amount" typically refers to the "sale price" of the property.
If there were any selling costs (e.g. commissions), add them to the cost basis of the property to ensure an accurate calculation of the gain.
I sold a piece of land abroad in 2020 and transferred my entire sale proceeds to my bank account here in USA. Do i have to report this transaction in my tax return,
Would it be the entire amount of transaction or just the gain/ profit.
How do i calculate my gain/ profit.
do i need any supporting documents.