@gl09602 , first my humble apology in not being able to help you when needed help. Please forgive.
Having gone through your original post and the one covering how you actually filed, here is what I get:
1. You acquired a capital asset ( an apartment ) through inheritance with a basis ( determined at the time of passing of the decedent ) of US$ 7000.
2. The asset was never used as income property
3. The property was sold in 2020 for US$10,000
4. This transaction required a commission/ broker's fee of US$200 and attracted a Korean Gains Tax of US$800 .
5. For US tax purposes ---- you sold a property for a gain of US$2800 ( 10,000 LESS 7000 LESS sales expense of 200 ). US will tax you for this gain as Capital gain since the property was held long-term. Since this was never an income property and no depreciation was allowable, there is recapture to consider.
6. Because you paid foreign taxes on a passive income, your options to claim this are as follows ---
(a) use all US$800 as deduction under State & Local Tax -- SALT with a limit of 10,000 if you itemize;
(b) use form 1116 to claim foreign tax credit -- foreign income US$ 3000, foreign Tax paid US$800. Note that in this case the actual allowable tax credit for 2020 would be essentially based on a ratio of your foreign income ( 3000) and world income ( your US earnings + foreign earnings). Un-allowed foreign tax credit can be used back one year or forward 10 years if and only if you have foreign income in those years.
(c) you claim foreign tax credit but use the safe harbor rule ( not use form 1116 )-- declare US300 if single filer or $600 if filing joint. This will require no ratio limitation but the amounts may be smaller. Ideally you may want to try this out and see which of these three options gets you the best results.
6. I do believe a desktop version and the higher functioning ones like "Home & Business" better suited to this kind of fairly complex returns.
In all of the above I am assuming that you are US citizen/Resident/Resident for tax purposes and that your tax home is USA
Again, I apologize for my absence. If there is more I can do for you, please let me know ( PM gets my attention faster )
Stay safe
