@smicp , generally speaking the carried Foreign Tax Credit while reducing your US tax burden may or may not extinguish your total US tax burden -- this is because :
(a) form 1116 ( Foreign Tax Credit form ) ,limits your allowable tax credit to lesser of the allocated US tax to the doubly taxed income OR the actual Foreign Taxes paid. It is almost a never winning battle.
(b) the gain computed on the disposal/ alienation of foreign asset is done per US tax laws and may be different from the country where the property is located
(c) Then there is the depreciation recapture -- ordinary / marginal tax rate for that part of the gain that is due / equal to the accumulated depreciation and capital gain treatment for the rest of the gain.
I recognize that I am not really adding anything to your statements in your post -- just making sure we are on the same page.
By the way , which country are you talking about ?
I am assuming that you are a US person ( citizen / GreenCard / Resident for tax purposes ).
Is there more I can do for you ?
pk
