Hi, thanks for getting back!
a) need to be very careful answering here as I might be getting some terms wrong.
Don’t really care about accrued foreign tax credit. I see this real estate sale resulted in some capital income that resulted in IS tax
liability (no tax in other country). So the goal is to pay less tax in US.
b) I guess the date I became US tax resident is the same date my green card was issued (day of entry). That was mid 2017. My first tax returns filed for 2017.
c) it was acquired a while ago, 2003 I guess. According to what I know I should pay capital tax based on its value the moment I became US tax resident in 2017.
It was my primary residence until mid 2018 but after that I stopped living there. It was used by my friend with no compensation. Starting 2021 I started getting rental income. I was getting this income 2021, 2022, 2023 until it was sold end of 2023. For all those 3 years I was taking depreciation as TurboTax proposed. As it wasn’t my primary residence any moment for the last 5 years I own the tax.
TT calculated it this way:
Sale proceeds (-) Sale related costs (-) Initial price (+) Total depreciation taken for those 3 years.
here base cost is basically how much it was the moment I became US resident.
so for me TT calculation of income seems correct but what I doubt about is can I deduct this income using foreign tax credit…. According to the reply above from rogge1722 I can’t as paid no foreign tax in 2023:( is that all correct?
