Capital Gain and Form 1116

Forum|Forum|1 year ago
December 2, 2024
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I am a US citizen and live and work in Germany year round. I had a capital gain (buying and selling shares/stock) of EUR 9,000 and did not receive a Form 1099B from my German Bank. My German bank automatically deducted 25% tax on the gain (German tax law). I now like to claim the German tax paid against taxes to be paid on the gain in my US tax return. How do I do this?

So far I filled in from 8949 and 1040D. I have no idea how continue with form 1116 to this regard. Can anyone help?

Not A Product Question

pk12_2

Employee

@GrlFrmDtrt , ( Girl From Detroit ? ) I am assuming that you are talking about tax year 2024. If that is so , generally it is best to complete your German tax filing first so that you have an exact amount for the foreign tax liability. This also means that you SHOULD plan on filing your US taxes between June 15th ( official filing date for expats ) and October 15th. of 2025. Also note that because US and Germany have a tax treaty in place ( and assuming that you are a US person i.e. citizen or GreenCard ), you have access to Foreign Earned Income exclusion and Foreign Tax credit to reduce the double taxation bite. TurboTax download of Windows for Home & Business is perfectly capable of handling your situation ( as I see it ). When you are ready for the return preparation, I will gladly walk you through all the steps so you can prepare and file a correct return ( for US purposes ). If your situation is not of interest to the general poster OR you want a little bit of privacy , you are very welcome to PM me ( just NO PII -- Personally Identifiable In formation ) and I will do the needful. And yes your case may need both form 1116 and 2555.

I will await your response