K-2 ... Foreign Capital Gains

Forum|Forum|4 years ago
March 11, 2022
2 replies
23 views

Does anyone have any idea about the Foreign Capital Gains category and what goes there. All of my input information is coming from a brokerage 1099. They do not break out the capital gains for the foreign securities held in the accounts. Are these considered foreign income? Of course, we have never considered them foreign income before.

Same with the asset values that we are to enter. Would those securities be considered "foreign"?

TIA!

ProSeries Professional

This topic has been closed for replies.

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Dusty2

Level 6

Scroll down the list a little and you will see the same question.

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nancy2Author

Level 6

Thank you for your response. Sadly, I have searched and do not find this question. Do you have a link possibly?

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Dusty2

Level 6

Does anyone have any idea about the Foreign Capital Gains category and what goes there. All of my input information is coming from a brokerage 1099. They do not break out the capital gains for the foreign securities held in the accounts. Are these considered foreign income? Of course, we have never considered them foreign income before.

Same with the asset values that we are to enter. Would those securities be considered "foreign"?

Someone will have to provide you with what Capital Gains were for foreign securities or you will have to review the statement security by security to make that determination.

I completed 1 and it was cumbersome. Make sure you enter in ALL income on the partnership not just foreign. Review each page (there are 20) and fill out all that apply in anyway to the information that you have.

Good luck

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nancy2Author

Level 6

Thank you for that response. I guess what I am wondering is, is that the right way to treat it? Those have never been considered "foreign income" before. I could see the argument either way I guess. Since those sales actually occur in securities accounts that are located within the US, is that really foreign income? It never leaves the border. Dividends are different because they originate in a foreign country and so they take their "cut" before it leaves there.

Your thoughts?

I have probably 25 - 30 1099's. So for one thing, I wouldn't even know if some of them are foreign companies. And the cost associated with ME having to do that would be outrageous! I have contacted the brokers and asked them to talk to their tax people about it to see what they say.

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Dusty2

Level 6

Thank you for that response. I guess what I am wondering is, is that the right way to treat it? Those have never been considered "foreign income" before. I could see the argument either way I guess. Since those sales actually occur in securities accounts that are located within the US, is that really foreign income? It never leaves the border. Dividends are different because they originate in a foreign country and so they take their "cut" before it leaves there.

Nancy:

Great question and I think you answered it correctly. Please let us know what you hear from their Brokers.

The one that I completed did not have any sales of foreign companies just dividends (it is a stock club). Depending on how many partners you have you may need extra paper - the one I did had 12 partners and it produced an extra 8 pages for each partner. Largest tax return we have ever had to print.

I am going to look for a class on this after tax season.

Dusty

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