My brokerage account is in EUR in France.
I don't get a 1099-DIV.
1) Do I report the dividends on the "Dividends on 1099-DIV" section?
I looked at this section but it asks for the boxes on the 1099-DIV which I don't have.
2) As for converting EUR to USD.
a) Should I convert the amounts using the exchange rate at the date I received the dividend or the exchange rate at the end of the year?
b) What service should I use to get the exchange rate?
Thanks
1. Yes - please use the data entry as if you received Form 1099-DIV
2. a - use the exchange rate when you receive the dividend (or for foreign tax paid, if any, use the rate when you pay/accrue the tax)
2. b - please use the following link; scroll down...it lists government sources as well as outside sources for exchange rates:
https://www.irs.gov/Individuals/International-Taxpayers/Foreign-Currency-and-Currency-Exchange-Rates
Additional information, if you'd like:
https://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates
1- Ok so TT won't help me define what type of dividends it is (Total ordinary dividends, Qualified dividends, Total capital gain distr., ...) correct?
2- The government sources don't have rates per day. Only per quarters from what I can see.
It looks like there is not a strict rule to follow in terms of where to get the rates so I just use whatever service I want? Do I have to report this information somewhere?
1. correct, you must determine the type of dividend; 2. you can choose the source for the exchange rate, no need to report it on your tax return, but i recommend keeping the source for our own records.
Thanks. I created another question on the capital gains.I understand that the same type of conversions should apply but I have a question regarding foreign taxes paid when purchasing a stock. Could you take a look at my question? <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3181713-how-to-report-profit-losses-from-a-foreign-brokerage-account-when-there-is-no-1099">https://ttlc.intuit.com/questions/3181713-how-to-report-profit-losses-from-a-foreign-brokerage-account-when-there-is-no-1099</a>
I have another question: how to know if a dividend can be qualified or not? I hold the shares for a while so it meets the duration requirement, however, does it change anything that it is from a foreign (french) brokerage account? Thanks
The dividend will be qualified if the foreign corporation is a qualified by itself... per the IRS: A foreign corporation is a qualified foreign corporation if it meets any of the following conditions.
*The corporation is incorporated in a U.S. possession.
*The corporation is eligible for the benefits of a comprehensive income tax treaty with the United States that the Treasury Department determines is satisfactory for this purpose and that includes an exchange of information program. For a list of those treaties, see Table 8-1.
*The corporation does not meet (1) or (2) above, but the stock for which the dividend is paid is readily tradable on an established securities market in the United States. <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p17/ch08.html">https://www.irs.gov/publications/p17/ch08.html</a> - the link also lists nonqualified dividends.