I reported a sale of an inherited property in a foreign country in the Investment Sales section. Now I would like to take a foreign tax credit. How do I do this?

[MinhT1]

Please follow the instructions in this TurboTax Help topic to enter your foreign tax credit.

[mostaboy]

Form 1116 seems to require an  income entry as a 1099-DIV; but, my income was entered in the Investment Sales section. How do I get TT to let me get the foreign tax credit?

[KurtL1]

The Gain on the sale of the inherited property is considered Passive Income for the Foreign Tax Credit.

[mostaboy]

So, if the capital gain income from the sale of inherited foreign property, is considered “passive income“, can I not take the foreign tax credit on the tax I paid to that foreign country? If I can take it, how do I go about it in TT?

[MaryK4]

Yes, you can take the foreign tax credit- see Where do I enter the foreign tax credit (Form 1116 ... and let us know if you have any questions.

@mostaboy

[vin_sphinx]

Sorry resurrecting an old thread with a similar situation & that article doesn't really answer the question about tax on property sale.

In "Other Gross Income - country", do I need to put down the Sale price or the Capital Gain (or even bother to do put anything there?)?

In "Any foreign source qualified dividends or long term capital gains", what goes into "Foreign qualified dividends and l.t. capital gains" if I have a capital gain?

Or both should be left blank & I'm misinterpreting the 2 screens?

[RobertB4444]

You need to enter it in only one of those two places.  Since it is the sale of property I would enter it into Long Term Capital Gains and only enter the amount that was a gain on the sale of the property.

@vin_sphinx