For my 2013 Form 1040 (U.S. Individual Income Tax Return) to be filed by October 15, I am currently preparing my Form 1116 (Foreign Tax Credit), specifically Line 1a (Foreign Gross Income) in Part I.
After reading the instructions for Form 1116, I know I may be required to make certain adjustments to my foreign source qualified dividends and foreign source capital gains (including any foreign source capital gain distributions) or losses, if I have any.
Since I own shares of Vanguard Total International Stock Index Fund, Vanguard sent me a tax document clearly stating the amount of my foreign qualified dividends, but there is no mention of foreign capital gains.
Out of curiosity, I look at the websites of other U.S.-based mutual fund companies and never found any mention of foreign capital gains (and associated foreign taxes), whereas the topic of foreign qualified dividends (and associated foreign taxes) comes up regularly for funds investing in foreign securities.
Hence my question:
Why do U.S.-based mutual funds investing in foreign securities never report foreign capital gains to their shareholders (whereas they typically report foreign qualified dividends)?
Thank you in advance for your responses.
- posted 5 years ago