This is a great thread and it relates to the issue I'm having with our taxes. My husband sold his house abroad, which he had since 2010. He (nor I) have lived in that home for the past 8 years, since we came to the US. He was not renting the home so I cannot include that as a rental property and he already paid taxes on it in Uruguay (where the property was and was sold). He had gains but they were around 50k (before taxes), so nowhere near the 500k I'm seeing here.
I'm having trouble finding where I should include this income. If I do it as the sale of a second home, there is no place to indicate it happened abroad, so we get double taxed. If I go to the foreign tax credit area, it's all about other kinds of income, not the sale of a property.
I am afraid of not reporting it because I don't want to get into trouble, so I'm completely lost. Do you have any advice?
Thanks!
