@alexandeributenk , from your post what i get of the situation is as follows:
(a) You a US person for tax year 2023
(b) you converted your home ( owned since 2003 ), to income property in 2020
(c) You reported income and expenses ( including depreciation ) on Schedule-E since tax year 2020.
(d) You sold this property in 2023.
(e) you have unused foreign tax credit
(f) You have no foreign tax on the swale of the asset in Ukraine
1. Because this was your home , if you had sold the property within five years of leaving the property you would have met the " Sale of Main home " exclusion. This is no longer available to you because with a look back of five years from 2023, while you would meet the ownership ( 2 years by either spouse ) but would miss the "use as main residence" because you stopped using it as a main residence in 2017/18.
2. Taxable gain is computed as Sales Proceeds (= Sales Price - sales expenses such as realestate commission, transfer tax , repairs for purposes of sale etc. etc. ) LESS Basis ( = Acquisition cost + Cost of any improvements during the intervening years - Accumulated allowable depreciation ).
3. This gain is taxed two different ways ---- that portion of the gain equal to accumulated depreciation is taxed as ordinary income ( at your marginal rate ); the rest of the gain ( i.e. gain LESS accumulated depreciation ) is taxed at a lower capital gain rate).
I don't know if this answers your question.
If you need more help please add to this thread and I will circ le back
pk
pk
