The foreign earned income exclusion is only for income from working. It does not apply to income from the sale of property. You need the foreign tax credit. In TurboTax the foreign tax credit is not on the Income tab. It's on the Deductions & Credits tab. Go to Federal Taxes > Deductions & Credits > Estimates and Other Taxes Paid > Foreign Taxes. Or in the Search box type "foreign tax credit" (without the quotes), then click the link that says "Jump to foreign tax credit." See the following FAQ for more information.
Where do I enter the foreign tax credit (Form 1116) or deduction?
