On Oct 16, 3:45*pm, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -


The 1099-DIV reports how much foreign tax was paid, but it doesn't
state whether that foreign tax was paid only because of the dividends
or also because of the capital gains.

Perhaps the most likely thing is that the tax was paid only because of
the dividends. Assuming this the tax would be about 10%, but assuming
otherwise it would be about 2 or 3 percent.

David Friedman





- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <cc9cee98-1658-410c-a28c-f57546a36124[at]s50g2000hsb.googlegroups.com> ,
<david.kit.friedman[at]gmail.com> wrote:
- quote -


See page 6ff of the form 1116 instructions for adjustments that might
be required for reporing foreign capitalgains distributions.


Capital gains distributions reported by a mutual fund is a form
of passive income that on the surface seems to be valid foreign
source income and so might seem that it could be reported.


On the other hand, I doubt you have any data reported to you on
the foreign tax paid on those foreign capital gains?


So you are limited to reporting foreign regular and qualified
dividends and the foreign tax paid on that foreign source income.


But if I am wrong, and you are told how much foreign tax
you paid just on the foreign capital gains distributions, then
see p6 of the form 1116 instructions for the adjustments to be made.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

For the foreign tax credit can capital gain distributions reported on
a 1099-DIV from a mutual fund (AEPGX) be considered foreign income?

The foreign income by country worksheet on the fund's website:

http://www.americanfunds.com/resourc...nformation.htm

seems to imply this. However, my financial advisor said that I could
not count capital gains made on the sale of foreign stocks as foreign
income.

David Friedman

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >