Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Apr 7, 2024 4:05:52 PM

reporting sale of U.S. stock and claiming federal foreign tax credit

I'm using the desktop Turbotax software. When I report the details of the sale of U.S. stock on schedule 3, the capital gain or foreign tax paid are not included on the Federal Foreign Tax Credit form T2209, and I don't see any way to override this to include the capital gain and tax paid. It seems only gains and foreign tax included on the Foreign federal slips form are included on T2209. I have no federal foreign slip, only a statement from the brokerage firm that was not reported to the IRS. So, is it not necessary to include the details of foreign stock sales on schedule 3, and just enter the capital gains on the Foreign federal slips form?

0 3 3229
3 Replies
Moderator
Apr 7, 2024 5:08:15 PM

There is no "Federal" foreign slip, it's a slip that is exists in TurboTax to make it easier to enter foreign income. You would enter your foreign income and taxes paid on the foreign slip, and it will put the amounts where they need to go (schedule 3, T2209, etc...).

Returning Member
Apr 8, 2024 10:25:37 AM

Ok, thank you Susan! So if I understand correctly, you are saying that the CRA does not require me to enter the details (stock name, year of aquisition, proceeds, cost basis, etc) of my U.S. stock transactions on Schedule 3, but rather I can simply enter the capital gains/loss and U.S. taxes paid on this income on the foreign slips tab of my TurboTax program. In this case, the progam automatically includes the capital gain/loss on Schedule 3 (line 17400) and on form T2209 (line 43300), and includes the U.S. taxes paid on this income on form T2209 (line 43100).

Moderator
Apr 9, 2024 9:55:18 AM

Yes. If the CRA needs additional information about the stock sale then they will contact you about it.