@TroutVision
(a) Assuming that you sell / dispose off the prop. in 2025, and that this was not an income property ( i.e. not used for renting out etc. ), you will need to recognize this transaction on your 2025 US federal tax return and ONLY per US tax laws.
(b) The income taxes imposed / levied by Portugal ( where the property is situated) is eligible for Foreign Tax Credit up to the lesser of US taxes on this foreign source income and that paid to the foreign taxing authority. Generally this is best done once the foreign taxes have been settled or there is a chance that you may have to amend your filed return if, and ONLY if ,there is a difference between the claimed amount and the final amount of foreign taxes.
(c) Since the Portuguese tax year is the same as US tax year, there should be no issue in claiming the FTC on your US tax return for the tax year 2025.
Does this make sense ? Is there more I can do for you ?
