@mach3833 , agreeing with my colleague @DaveF1006 for his excellent reply, I just want to point out that the "fideicommiso" is only an ABC trust to comply with MX prohibition of foreign direct ownership of real-estate in certain areas. For purposes of US taxes it has no role to play -- I am assuming here that you the "lease holder" of the asset is selling the "leased asset" to another. Thus there is no 1099-S involved.
But Mexico collects taxes from the transaction including "I v a " and capital gains tax. The gains tax would fall under Foreign tax credit ( passive ) but "iva" ( UK' VAT equivalent) I think is like a transaction tax and would not be eligible for foreign tax credit.
Are you all set on this ?
