Is there any foreign tax credit for stock sell?

[huangbiz2009]

after a lot of research work online, I guess I may treat it as restricted stocks.  I pay 1st time US tax in the year of vesting, as wages (because this does be treated as wages in China, and is reported in W-2 if in US), and pay 2nd time US tax as long-term capital gain in the year of selling.  Is that ok?  But in this way, I won't report this restricted stocks to IRS until I sell it, is that ok?  Thanks a lot!

[Hal_Al]

I can't say for sure that is OK. Your situation is too unclear and complicated. As suggested at your other post, you need to consult a tax pro. Any income reported as wages usually  must be reported on your US return, but is usually eligible for the foreign tax exclusion

[huangbiz2009]

Thank you.  Yes, I plan to report it on my US return.  But as my understand of your words, do you mean there is some kind of income that don't need to be reported on US return?  I thought we need to report any income in US return.   One more question, for restricted stocks in US, should receipent report this to IRS before selling?  or don't need to report this until sell? If need to report before selling, when shall the receipent report?

[Hal_Al]

I'm afraid the discussion has gotten too far from the original question about foreign tax credits. You really need to get professional help. We're not communicating.
All income has to be reported, on your US return. It's not clear just what (in your situation ) is income and if it is income,  has it already been excluded under the foreign earned income provision.

[huangbiz2009]

Thank you very much for your suggestions, comments, and time!

[Hal_Al]

Other than the foreign earned income rule, there is a general (not stock specific) foreign tax credit that would apply. Type> form 1116 - foreign tax credit <in the find box.

[Dennis8]

Did you try calculating your taxes without using the FEIE?

Without using the FEIE, you can use all the Form 1116 for all your income i.e. both wages (General Category) and Cap Gains, Dividends, etc. (Passive Category).  This may be more favorable to you and you can make your choice on which to use.  This works in some cases.