where to report various foreign income

Technical topics regarding tax preparation.
#1
cl2018  
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United States
taxpayer has
1. capital loss from sales of local mutual funds in foreign country
2. foreign interest income

where should he report these items on 1040. He is green card holder.
Thank you!
 

#2
sjrcpa  
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Maryland
Interest income goes on Sch B
Mutual fund shares go on 8949.
Also report on accounts on FBAR and 8938, if applicable.
 

#3
cl2018  
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sjrcpa wrote:Interest income goes on Sch B
Mutual fund shares go on 8949.
Also report on accounts on FBAR and 8938, if applicable.


Thanks for prompt response. I understand they should report basically the same place as income from US. But in tax software, how can I bypass inputting info. onto 1099B and 1099INT. Just manually override and type amounts on 8949 and sch B? Thanks again!
 

#4
Guya  
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London, United Kingdom
Interest is entered on Schedule B, 1116 & Form 8938.
Mutual fund loss is entered on Schedule D, 8621 and (possibly) on Form 8938.

Losses are calculated using the spot exchange rate for each purchase and sale. Mutual fund losses would be reported slightly differently if a QEF or M2M election has been made.

If an 8621 or 8938 were omitted in the past you'd naturally be discussing the SDOP with the client at this stage.
PS – Greeting from London, England. Grey and rainy ...
 

#5
sjrcpa  
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It depends on your software. Mine has no requirement to indicate a 1099-INT. For Schedule D/8949 transactions there should be a way to indicate "not reported on 1099-B".
 

#6
cl2018  
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Thank you for all the responses. Very helpful!
 


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