Withholding tax deducted on capital gains on sale of shares in a foreign country

@Nitabai , whereas TurboTax  ( like most other service providers ) does not specifically call out  "sale  of foreign realestate",  there is sufficient Q&A to do the needful. Below I list what you have to do :

( Note I do not know  which foreign country the property/ asset is in  for purposes of  Tax Treaty consideration ).

Assuming that you are a US person ( citizen/ GreenCard / Resident for Tax purposes 😞

(a)  Tell TurboTax that you have sold a capital asset --- it will walk you through  either  sale of main residence or  income property-- depends on your answers 

(b) You will need the  dates of Acquistion  &  Sale, how acquired,   Cost of acquisition  ,   Sales Price, cost of any improvements during ownership, any allowable depreciation  ( accumulated  over the years  as income prop. );  Sales expenses  ( such as  commission,  repairs etc. just for sale; transfer tax etc. etc. ).

(c) Once you have all these bits of info entered ,  TurboTax will compute the  gain/loss  on  the transaction per US tax laws.  Note  that  any allowable depreciation  affects  will be taken into account (  accumulated depreciation  increase the gain on the sale and also treats  the amount as ordinary income in case of gain, the rest of gain is  given capital tax treatment ).

(d)  Now  under the  " Deductions and Credits "  tab , go down towards the bottom of the  drop down list of items and select " Foreign Tax Credit ".  This is where you enter  your total gain as foreign source income and the total taxes paid to a foreign taxing authority as  Foreign Tax paid/accrued.

Note that  what you are getting ( assuming that the  double taxation  clause is in the treaty), a reduction of your US taxation, based on US ta laws  -- it may or may not be equal to what  you paid ( the unallowable portion of Foreign Tax is carried  forward or back to other years with foreign source in come ).

This is the general answer.  If you need more details on how to do this , you can add your details here or PM me  ( NO Personally Identifiable Information) with the details  of the situation.

Is there more i can do for you ?