Thank you so much for your comprehensive reply.
I am a little confused about how to apply the foreign tax credit. The taxes i paid in the foreign country regarding the sale of my portion (70%) is about 100k. Suppose my income from U.S. will be 150k in 2024. And the only source of foreign income is the sales proceeds from the property say $1.75mil. Then how much would that 100k foreign tax credit get to reduce the tax I need to pay in the U.S.
Based on the number in your reply, if my capital gain is $300k (after applying 500k exclusion for married couple). Then my long-term capital gain tax on that gain would be $300k * 0.15 = $45k.
I understand only a portion of the 100k foreign tax i paid would be applied to reduce my tax in U.S. But I can't figure out how to calculate it. Could you point me to the right direction ?
Thanks so much again!
