Selling foreign property and taxes in USA - Tax %

@annava17 , 

(a) as a US  person   ( citizen/ GreenCard / Resident for Tax purposes ) US will tax you on your world income.  Thus  you have to report  this foreign asset sale to the US  on the return for the tax year when the sale was consummated.

 (b) Note that for US purposes  your basis in the property is the sum of  the costs  to acquire   and those  of improvements that you did during your period of owning the property.    Also this basis  is reduced  by any allowable depreciation during those years  that the property was used as income property ( like rented out ).    So for all properties  the  Adjusted Basis is the  basis  adjusted for accumulated depreciation.   This final basis is called Adjusted Basis.  

(c)  Your Capital gain  for US purposes is the  Proceeds  from the sale  ( Sales price LESS  any sales expenses like sales commission, legal work,  transfer taxes  paid etc. etc.)  LESS  the Adjusted Basis .    And the US will tax you on this  Capital Gain ---- that portion of the gain caused by the  accumulated depreciation is taxed  as ordinary gain  (  taxed at your marginal rate )  while the rest is taxed at capital gain rate   ( 0%, 10% , 15%  etc. )

(d) If  the foreign taxing authority taxed this transaction as  income the that tax amount is eligible  to be treated as  Foreign Tax Credit  ( FTC ) or as deduction if you itemize and so choose to.

(e)  Note that the  gain computation  has nothing to do with how the gain may be computed by the foreign taxing authority ( e.g. many countries use an indexing method to adjust the basis  in the property ).

(f)  transferring the monies from the foreign country  to the USA is NOT a tax event.

A last point --- since I have no knowledge  of the   On-line version of TurboTax, I can only speak about the  Windows  downloaded / CD version of the product.  I kl now for sure that the Home & Business version  of the windows   product is perfectly capable  ( and is my favorite  )  to deal with all these complex issues.  It will guide you in preparing a  correct return .

That is my view.

Is there more I can do for you ?

I am not a beneficiary  and/or connected to TurboTax in any way -- just a volunteer helping users.