for US it's sales price less selling expenses plus lyour cost (tax basis without indexing for inflation) reported on schedule D/formm 8949
you have the option of deducting the taxes paid on schedule A - total limit on all deductible taxes is $10,000 and your itemized deductions must exceed the standard deduction for this to be of benefit.
or
take a credit against your federal taxes by completing form 1116 passive income category
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- Open (continue) your return in TurboTax
- Enter all your foreign income in Wages & Income if you haven't already
- Select Search, enter foreign tax credit and select Jump to foreign tax credit
- Or go to Deductions & Credits, and select Start next to Foreign Tax Credit under Estimates and Other Taxes Paid
- When you reach the screen Do You Want the Deduction or the Credit? select the option you prefer for your situation
- If you select Take a Credit:
- Select Continue on the next screen, then select No to fill out Form 1116
- When you reach the screen Country Summary, select Add a Country
- Answer the questions about your foreign income, taxes, and expenses on the following screens
- When finished, you'll be taken back to the Country Summary screen. If you have income from other countries to enter, select Add a Country. Otherwise, select Done
- Answer the questions on the following screens until you reach your Foreign Tax Credit Summary. If you’re finished with this section, select Done
- If you select Itemized Deduction:
- Enter your foreign taxes paid on the next screen. These should show up in the Deductions & Credits section of your tax return, under Other Deductible Expenses
In most cases, taking the credit works out better than the deduction.
