This is how you will report the income so that it will transfer to Schedule D using TurboTax.
- Go to Wages and Income
- Go to investment income
- Go to Stocks, Cryptocurrency .......
- Classify this as other
- Follow all the prompts to determine what your capital gains is on the sale.
If you paid Foreign Tax on the sale.
- Go to deductions and credits>
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- When it asks We just need to check if you have any uncommon situations indicate I paid foreign taxes on income I earned while working in another country.
- Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice between a deduction or credit.
- The first that you will be asked is what category of income is it, you will say passive income..
- Next screen will say Country Summary, select add a country and then select Canada.
- When it says Other Gross Income - Canada. Here is where you report the gross sale.
- Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - India, here is where you record the amount paid under Foreign Taxes on Other Income. Then below that you will enter the amount of taxes paid in taxes.
- Continue through the section until you are done.
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