I have a similar problem - I sold property in India with cap gains of about $150K and I paid taxes in India of about $30K (effective rate of 20%). Now, if I enter the proceeds in the "Investment and Savings" section as 1099-B and enter the foreign tax in the foreign tax credit (Form 1116), my tax obligation goes up by around $8K which should not be the case if there's a dollar for dollar credit on the foreign taxes as the US rates are 15% for my tax bracket. Can someone please help me understand why I would need to pay additional taxes in the US for this transaction?
