@Damocles , without knowing the (a) your basis in the property for US purposes; (b) sales prices ; (c) your total gain in the property under US laws , etc. I cannot answer if you are doing something wrong or TurboTax is mis-handling something.
Generally the form 1116, while recognizing the foreign tax dollar for dollar, uses a ratio of foreign income to World income to limit the foreign tax credit allowable for the year in question. The suspended foreign tax credit can be carried back one year or forward , provided there is foreign income in those years. It often becomes an asymptomatic curve -- never giving you whole amount but getting closer and closer ( if you have foreign income.
So please can you help by providing more details ref'd above and I will be happy to look at and see what is going on.
pk
