@um , agreeing with @MichaelL1 , wish to add a few little items :
(a) your basis in the property is your acquisition cost ( in US$ of the date ) + cost of all improvements ( in US$ of the time )
(b) your gain ( capital ) is the total sales price LESS sales expenses ( commission, preparation cost, transfer tax, title insurance or equivalent etc. etc. ) LESS your basis. You will have to convert all these costs to US$ of the day ( bank rate )
(c) if the local authorities tax the gain then that tax needs to be allowed for -- (1) take foreign tax credit against the gross proceeds as foreign source income or (2) deduction on your return
(d) if the net proceeds from the sale rested in an foreign account , that you own or have signature authority over , this may require FBAR ( Fincen 114 on line reporting or FATCA ( IRS 8938 ) reporting
(e) Tell TurboTax that you have sold a second home and it will do the needful ( except for the FBAR { Turbo does not handle this } or FATCA trigger -- you have to tell TurboTax that this is foreign source, which should then trigger foreign tax credit form 1116 )
(f) States generally tax you on your world income as indicated by the federal AGI -- so there may be reporting requirement for the sale -- depending on the state. Note that many states do not recognize foreign tax credit ( as opposed to tax credit for another US State )
Hope this helps - if you have more questions on this please feel welcome to comment
