Thank you again for your super fast response.
One more question. I've inputted everything as I believe is correct. India charges taxes on the full selling price of land (T.D.S). TDS rate was ~15% of selling price. US taxes on l.t. capital gains, therefore, way less taxes in US. However, I needed to pay the taxes in India.
On my tax return, I have shown proceeds of land sale and estimated fair market value at time of inheritance. The difference is the l.t capital gains that is taxed in the US. This amount is far less than the foreign taxes I have paid to India, again 15% of gross selling price. Once I've input all information and have taken the foreign tax credit, I have increased my refund substantially. Enough I took my federal taxes to 0. I could not even use all of the foreign tax credit, the remaining will be forwarded to next year. Does this seem right that I should receive a refund for foreign taxes paid in another country?
Also, the estimated fair market value. The land was inherited in 2022. The fair market value has grown in India roughly 20% to the time of sale. However in 2022, the rate was ~$74. The rate now is at ~$85. The fair market value I have shown is at the $74 exchange rate. This is the higher fair market value which lessens the capital gains I am showing on my tax return for l.t. tax calculations, is the correct?
Thanks,
