foreign tax credit carryover

Forum|Forum|3 years ago
March 15, 2023
1 reply
14 views

client has a large foreign tax credit carryover. this year he sold foreign stock for a gain (no foreign taxes withheld). Transaction occurred in the foreign country; not reported on a 1099B.

Is he able to use form 1116..show the foreign capital gain and use up some of the carryover tax credit.

He also had large dividends from the same stock with foreign taxes withheld ( I know how to handle this.). He has been getting these dividends for years so he has accumulated a large carryover.

Thanks

Individual

This topic has been closed for replies.

sjrcpa

Level 15

The gain on that stock is foreign source income for the 1116 if that's your question

The more I know the more I don’t know.

D

daroccoAuthor

Level 5

Thanks for replying… So I can include the capital gain even though no foreign taxes were withheld and not double taxed? Unlike the dividends automatically included on Form 1116 I will need to manually add a new column for the capital gain.

sjrcpa

Level 15

It's foreign income used in the calculation of how much foreign tax credit can be used this year.

Since it wasn't double taxed it may not help.

The more I know the more I don’t know.

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