I am a US resident in the state of IL. In 2024 I sold land inherited in India many years ago. The transaction was complete in September and T.D.S / T.C.S taxes (24%) were deducted from payments, net proceeds were deposited in India's Bank account owned by me then transferred to my US account. Since this land is inherited, the US calculates capital gains on FMV when previous owner died, however India Capital gains were on the entire purchase price. Not sure how to calculate FMV as it was years ago. Since India and US has DTAA, how do I file my Tax Return showing sale of land with capital gains and taxes paid in India?
What I've so far:
Include sale of land - wages and Income - Investment income - form 1099-s
Deduction & credits - estimated taxes paid - foreign taxes. complete form 1116. took credit. selected passive income as type, add country and include foreign taxes on other income.
