Get your taxes done using TurboTax

For the taxes paid to other countries, you would need to fill out the Foreign Tax Credit section of the return. This section is different from the investment section where you reported the sale. I will list the steps at the bottom of this response.

For the first question, you will enter $50K for the amount of proceeds. As I mentioned, a foreign tax credit will be applied when you complete the foreign tax section on your return. 

When you sell an inherited house, the tax rules combine aspects of both investment property and capital asset guidelines are the same, no matter where the house is. The key to your question is distinguishing between Expenses of Sale and Holding Costs. 

For example, your appraisal for FMV purposes, improvements, and selling costs are added to the basis of your house to reduce its capital gains. Any travel expenses, utilities, house taxes, lodging, boarding, and local transportation aren't. 

You are eligible for a foreign tax credit or an itemized deduction for the taxes paid.  Here is how to report in TurboTax.

1. Go to Federal
2. Go to Deductions & Credits.
3. Scroll down to Estimates and Other Taxes Paid.
4. Click Start/Revisit next to Foreign Taxes.
5. Begin filling out the section. When it asks you for the type of income, indicate it is passive income.

Here are some links that will prove helpful to you.

IRS Publication 551: See the section "Property Acquired from a Decedent."

IRS Publication 550: See "Capital Gains and Losses" for how to report the sale.

IRS Publication 523: While this is for primary homes, the "Selling Expenses" list on page 12 is a great checklist for what you can subtract from your sale price.

As I mentioned before, the reporting rules are the same no matter where the property is located. even on foreign soil. Aslo uncheck the box that says you have more information to report. You have no more information to report in the remainder of that section other than the information you have already recorded.