Foreign capital gain where do i enter it

[MargaretL · Accepted solution]

Foreign capital gain is entered the same way as domestic capital gain.

1. Federal Taxes 
2. Wages & Income
3. Scroll down to Investment Income
   
4. Select Stocks, Mutual Funds, Bonds, Other – indicate that you have not received form 1099-B and continue through the interview.

If you have any foreign dividends, enter them as if you have received form 1099-DIV. (the same applies to any foreign interest... enter it as if you have form 1099-INT... with foreign tax paid entered in their respective boxes).

[sirajsindhi]

Hi, While filing return online do we need to submit physical form 8948 to IRS for any foreign capital gains ? or any other kind of form we need to submit to IRS

[prakash_grama]

I entered the foreign CG through the Stocks screen. These are gains from my India Brokerage based on Mutual Funds and PMS (sale of shares). There is no option there to indicate that it is a foreign income. So when I go to through the Foreign Taxes screen and the Foreign Tax Credit Worksheet, and go through the Passive Income Category, it takes me to the screen "Any foreign source qualified dividends or long term capital gains". There it shows Total Foreign Income for this category. That amount does not reflect my CG but only my Interest and Dividends I entered on 1099-INT and 1099-DIV. How do I ensure that the total foreign income includes my CG? Can I enter my LTCG in the Other Gross Income there? But that would be double reporting as I already reported it on the 1099-B section of Stocks? It seemed to have lowered my taxes when I enter it in both places. But at least it is reflected in the total amount and I can then enter the full CG amount in the Foreign qualified dividends and l.t. capital gains field.

The other option is to enter the CG in the 1099-DIV in box 2(a) as a CG distribution. And that screen has the option to enter the foreign tax withheld. If I enter $0.01 in the tax, TT recognizes that as foreign income and shows it in the Foreign Tax Credit worksheet.

Also, I have a foreign STCG loss. Should that be subtracted from the foreign LTCG and only the net reported? 

[raghuv]

Same problem here. How do I enter foreign capital gains so that I can take credit for taxes paid abroad during F1116 interview.

[MarilynG1]

@raghuv To claim a Foreign Tax Credit for Capital Gains entered as 'Stocks, Mutual Funds, Bonds, Other' in your Federal Return, you need to choose an Income Category in the Foreign Tax Credit section, which would be Passive Income (screenshot). 

If you also reported Foreign Tax paid on interest or dividends, you will have to proceed past the review of these entries in the Foreign Tax Credit Section.  Indicate 'Done' and you will be asked if you have other types of foreign income to report.

You will need to enter the amount of your Foreign Income (capital gains) and then enter the Foreign Tax paid on this income.

Click this link for more info on Foreign Tax Credit for Capital Gains. 

[arom]

The system keeps asking me to upload my 1099-B.