@chievolt , here is what I did to achieve the results expected using desktop version -- so I could see the worksheets/forms being filled correctly ( but the on-line should be pretty much the same )
1. created a home sale -- main home and then "did not use as my main home for two years" -- thus becoming second home and the capital gain showed up.
2. went to search window and searched for "foreign tax credit" -- jump to it ---now followed screen prompts for the next bunch of screens making sure the capital gain amount was entered as the foreign income from the country ( established MX as the country ) and the actual taxes paid to Mexico --- form 1116 was filled out correctly and the foreign tax credit computed and applied. Also made sure that form 1040 did not add this foreign income reported on 1116 as an additional income.
3. Make sure that the everything looks consistent --- it is a bit contorted but does work.
4. I think once you pay for the preparation of the return , the on-line version does allow you to see the forms before you file -- please review to make sure that things are good.
5. I don't know about Mexico computation of capital gain -- just make sure to enter the Mexico Capital gain amount ( Pesos converted to US$ ) and not the US computed capital gain -- I say this because some countries index the basis such that the gain ( at source country ) may be different than that in the USA ( because USA does not index the basis )
Does this answer your query ?
