capital gains

Forum|Forum|4 years ago
March 4, 2022
3 replies
18 views

In 2021 I sold a timeshare in Canada. I am a U.S. Citizen. How do I report this on U.S. return? I also paid capital gains taxes of 25% to Canada. The funds I received were NET proceeds. How do I get the foreign investment credit for the taxes I paid to Canada? Can all this be done through TT deluxe?

ThomasM125

Level 15

You do need to report the investment sale on your US tax return. You can apply for a foreign tax credit to recoup the taxes you paid in Canada. You can do all of this in TurboTax.

Follow these steps to enter your investment sale in TurboTax:

While in the Federal section of TurboTax:

1. Income and Expenses

2. Investment Income

3. Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)

4. Choose "Other" and then "Land (personal use)" and enter your sale information

You will find the foreign tax credit routine in the Deductions and Credits section, then Estimates and Other Taxes Paid and then Foreign Taxes.

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HappyCat156Author

Level 2

Thank you for the quick and detailed response but I don't think it worked. First, there were questions I had no idea what they wanted. Tried a couple different ways but nothing seems to make a difference. Is there a way I can upgrade or pay for a "live" walk through? This is a once in a life time foreign tax credit return. Typically, my returns are straight forward, uncomplicated.