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In Form 1116 step by step there is a question for Foreign Qualified dividends and LT Capital Gains

Forum|Forum|4 years ago
March 5, 2022
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My question is a about foreign stock held as ADRs in a Brokerage account. The 1099 shows the Foreign Qualified dividends, so I can enter those. What about Capital gains on ADRs? Do I have to figure these out from 1099-B and enter these here?

Thanks.

Best answer by rogge1722

The sale of ADR's on a U.S. exchange is the same as the sale of any U.S. security. There is no foreign tax paid, thus the capital gains is a domestic issue only.

R

rogge1722Answer

Employee

The sale of ADR's on a U.S. exchange is the same as the sale of any U.S. security. There is no foreign tax paid, thus the capital gains is a domestic issue only.

V

videntAuthor

Thanks for the clarification on capital gains. My 1099 shows the qualified dividends for the foreign ADRs. That I should put in the specific field?

Thanks!

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rogge1722

Employee

Dividends, whether qualified or unqualified received from a foreign company held thru an ADR can be considered foreign sourced income if you need to fill out a form 1116.