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You will report that in the same section in which you report stock and other investment sales. To enter:
To receive the foreign tax credit, enter "Foreign tax credit" into search and hit enter. The program will guide you through claiming the credit.
Much thanks!
For the Foreign Tax Credit. Do I pick itemized deduction or take the credit? The capital gains tax I paid was $15K. Thanks!
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:
Foreign Tax Credit and Other Tax Implications of Foreign Investments
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:
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.
Hi
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!
You need to enter the gross amount there.
sorry but when you say gross amount, does that mean the sale price of the property I sold? just want to clarify and much thanks for your patience.
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.
You will report the sale of the land by:
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