Foreign MF capital gain tax

[Krishna Doss]

I have foreign (India) capital gain from MF & stock investments. Are they treated same way like capital gain tax from US MF & stock investments. My total investment in foreign MF is <$50K.

[DianeW777 · Accepted solution]

Yes, they are treated the same way on the US federal tax return as any stock and mutual fund transactions. If you must also pay tax to India then you may be able to use the federal tax credit or deduction.

• US India Tax Treaty Information
• Where do I enter the Foreign Tax Credit (Form 1116) or deduction?

[MaryK4]

Yes, you can make the entries in Investments and use the same Long and Short Term.  

To enter as investment sales:

Under Federal Wages& Income, select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) under Investments and Savings.

1. Did you have investment income in 2024? YES
2. Let's import your tax info  Enter a different way
3. OK, let's start with one investment type Other Continue
4. Tell us more about this sale  Name and Continue
5. Now, enter the sale information.