I am a U.S citizen living in a foreign country for a decade. How do I report mutual fund sales from foreign country and deduct the cap gain taxes paid to forein country?

[KarenJ]

You report your mutual fund sales as if you had received a 1099-B under investment income, Stocks, Mutual Funds, Bonds, Other.

Then enter foreign tax credit in the search box at the top of the screen and click on Jump to foreign tax credit at the top of the responses.  

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 for stock sales  - it will be Passive income
8. Enter the name of your foreign country
   
9. Enter description - Stock sale
   
10. Enter Gross proceeds from your sale (not the gain)
    
11. Enter your taxes you paid on your Stock sales in the box "Other income"
    
12. Go through the remainder of the foreign tax credit screens until you are done.