IRS forms for claiming U.S. FTC on Canadian LT Cap Gain

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AvalonJeff
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Joined: Tue Jul 19, 2022 12:24 pm

IRS forms for claiming U.S. FTC on Canadian LT Cap Gain

Post by AvalonJeff »

Dual CAN/US citizen resident Canada, MFS. I've previously used forms 1116 to claim FTC on General category income, as well as interest and dividends in the Passive category. I have not previously had to report capital gains. I need to know how to report the gain (and claim the U.S. FTC) on a single sale of qualified TSX stock. I’m attempting to use form 8949-B and Schedule D to report the gain and then use the Passive form 1116 to take the FTC. But I don’t see any way on Schedule D to report that the gain is Canadian sourced and link it to the 1116 form in the same way that I can do with interest and dividend income. How do I report that the capital gain is foreign sourced in Canada and link it to the passive 1116? Hope this explanation isn’t too confusing. I can definitely use some suggestions. Thanks.
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