As an US citizen living in the US, if I buy/sell stocks on the London Stock Exchange do I pay taxes to the US and the UK?

I'm an American and I own a few stocks in foreign companies. Not the UK but one in Canada, one in Sweden, and one in Israel.

Every year the broker sends me a 1099 that says how much tax they paid to these countries in my name. I can then take a credit for these taxes from my US income taxes. I could look up what line on what form, but the tax software I use has a box to type it in and so I do and presumably they then put it in the right place on the forms.

So yes, you will pay foreign taxes. But then you get a credit for this on your US taxes so you end up paying the same as if it had been an American company.

Let me add that I have a total of about $3,000 in these foreign stocks. My foreign taxes on them each year have been like $2 or $3. I don't know if the rules change when you are talking serious money, like if you had a million dollars in some foreign stock.

They also ask if you have more than some percentage in any foreign company, I forget the number. My stock holdings are a tiny fraction of a percent of any company I have stock in -- I have a ways to go before I have a controlling interest in a billion dollar company :-) -- so I don't know what difference this makes.