DawnC
Employee Tax Expert

Deductions & credits

You can include a reference to India in the property description when you report the sale.   

 

The tax you paid to India should not be reflected in the calculation of your gain.  You will be able to take a credit for the foreign tax paid on your US Tax Return, see link below.   You will have to come up with a reasonable method to determine the fair market value of the property at the time you inherited it, or use a cost basis of zero - $0.00 .   Be sure to document and keep your method of determining the fair market value when you inherited the property. 

 

To report the foreign taxes you paid, follow the instructions in this TurboTax FAQ

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"