@chievolt , if the foreign country does tax this capital gain with an income tax, then you will have to file a form 1116 --- you tell Turbotax that you have foreign tax to report --- do a search for "foreign tax credit" then jump to the topic -- that should open up the worksheet for the foreign tax credit -- enter the category as passive --- follow though with all the entries. Make sure that the foreign income associated with this tax is recorded properly -- TurboTax may not have enough info to fill this ( because it only knows the capital gain based on the sale of property but not that it is foreign ). This should work.
If you need more on this , please provide the following info (a) which country; (b ) was the property ever rented out at fair rent ; (c) how did you acquire the prop etc.
