Thank you very much, @jtax .
The taxes included the capital gain tax and also the land tax paid for the sale to go through. My understanding is that California does not give Foreign Tax Credit. So using an example similar to the one in
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/foreign-tax-credit-california-di...
Sale of a Country-A (not India) land for $1M happened in 2024. For the sale to go through, the capital gain tax paid to Country-A was $200K, and the land tax paid to Country-A was 10K.
The other expenses (etc. Broker Fee) $90K.
The net proceeds at the sale was $1M-$300K=700K.
I will appreciate answers (hopefully from all experts familiar also with CA rules) to the following questions:
- Can I add the $200K Capital gain tax paid to Country A to the expense for California?
- Can I add the $10K land tax paid to Country A to the expense for California?
- Can I add the $200K Capital gain tax paid to Country A to the expense for Federal?
- Can I add the $10K land tax paid to Country A to the expense for Federal?
- I should be able to take the $200K capital gain tax as the foreign tax credit for Federal, right?
- Can I claim the $10K land tax as foreign tax credit for Federal?
The US capital gain tax, Medicare tax and CA income tax for this sale seem pretty significant based on the current TurboTax calculation.
Many thanks.
