Investors & landlords

It is reported as a normal property sale except the depreciation schedule is different.  normally on a domestic rental the property is depreciated over 27.5 years.  since you rented your property in 2018, the depreciation is depreciated over 30 years instead of 27.5 years.

You qualify for a partial exclusion if:

• You took or were transferred to a new job in a work location at least 50 miles farther from the home than your old work location. For example, your old work location was 15 miles from the home and your new work location is 65 miles from the home.

• You had no previous work location and you began a new job at least 50 miles from the home.

• Either of the above is true of your spouse, a co-owner of the home, or anyone else for whom the home was his or her residence.

  Also if you captured the depreciation since you rented the house, that is correct. Make sure you use a 30-year depreciation schedule in recapturing your depreciation because this is the depreciation you will need to report as a recapture and not the actual depreciation you may have claimed using a different deprecation schedule.

All reporting is done with US dollars. So you may need to know what the USD equivalent for the currency amount on the purchase date and the sales date.  It may fluctuate between the two dates so you may need to do your homework to find out what the USD equivalent value was on a certain date. You might wish to use an average but if considerable time elapsed between the purchase and sale date, an average may not be accurate.

Finally, here is where you will list the foreign taxes paid on the sale. 

1. Open Turbo Tax
2. Go to federal>deductions and credits>estimate and other taxes paid
3. Foreign taxes >start
4. Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified  election
5. Answer the questions in the next screens until you reach a screen that talks about income type. This will passive income. 
6. Next screen is where you add the country your foreign income was earned in. 
7. Next screen will ask you what your source income earned in that country. Here you will allocate income earned while you were in that country.
8. You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. Be sure not to list a date at the bottom beyond 12/31/2022 or you won't get the foreign tax credit and will show up as an error in your return

{Edited 03/28/23} (4:36 PM PST} @matun