Dear TuboTaxDeeS,
I really appreciate your prompt advice! To follow up,
1. I am married filing a joint return.
2. I meet the primary residence test, but my wife does not.
3. The foreign home sales will result in a gain greater than the $250K single person exclusion.
4. I must pay a substantial amount of taxes in the foreign country as mandated by the foreign country.
Are you saying that I can not and should not report the foreign taxes paid, and can and should only reduce the foreign home sales gross proceeds by the total amount of taxes?
Thank you very much!
