I was going thru this thread
and this one
I have a different tax situation. I sold one real-estate property in India. Indian government immediately deduct the taxes on that property sale(called TDS or tax deduction at source) which is around 21.5% of the overall value(not profit but overall value).
I am US Citizen. Do I need to report this? Can i get some money back as here in USA - my effective tax rate is around 15%.
When I called Turbo tax - I got some shaky answers - like fill form 1116. When i filled form 1116 - it seems I can claim the entire tax that i paid in India back here in USA. This really doesn't make sense to me as whatever is my overall long term gains(property was held for 19 years), I need to either pay the taxes in USA or India.
Can somebody guide me? thanks in advance.
I don't trust turbo tax tax experts nowadays a lot as every time I will call - I will get a different advice. Most of them are seasonal workers and contractors.
