how to claim （deduct） foreign tax paid on foreign sock sale from US capital gain tax

[davoti2]

Hi Dear,

I would greatly appreciate some help on this.

I live in the US, last year, I sold a foreign company stock in that country and also paid local tax in that country, how do I file foreign tax sale ( I saw TT help saying just treat as a regular stock sale)

AND

how to deduct the local tax I have paid in that country from my capital gain tax paid in the US?  (should I use itemized or tax credit?)

TIA

Dave

[GeorgeDenseff]

You could put it in as a 1099-B even though you don't actually have a 1099-B and the foreign tax paid as a credit under less common income.

You can also report both as:

• Wages and Income
• Less Common Income
• Miscellaneous

Someone else may have another solution.  

[davoti2]

Thanks for the information but I did stock sale, my understanding is that it is part of capital gain, not treated as regular income...

[GeorgeDenseff]

In that case, use the 1099-B as if you had been issued a 1099-B and mark it for capital gain.