1) There is no estimation of price. If audited, you have to be able to prove it. Depreciation is based on the ***LESSER*** of what you paid for the property, or it's FMV on the date it was placed in service. Generally speaking, what you paid for the property will practically always be the lower amount, since real estate tends to increase in value over time.
Your cost basis is:
What you paid for the property plus any property improvements that were done *BEFORE* the property was placed in service. I have found TurboTax does not correctly figure the structure to land values if you add your purchase price to the cost of any improvements done before placing the property in service. So it's best to just separate them out. Enter what you paid for the property and let the program figure the split between the cost of land and cost of the structure for you. Then enter your property improvements as a physically separate entry in the Assets/Depreciation section.
2) As I understand it, you are a U.S. Citizen. There are 196 countries on this planet and the U.S. has tax treaties with 132 of them. Even if I know what country you're dealing with here, I am not a tax lawyer and therefore not knowledgeable on the terms or any tax treaty. But I do know that you can account for and get a credit for foreign taxes paid. That credit may or may not be dollar for dollar either. However, you will ***NOT*** deal with that anywhere on, near, or around the SCH E section of the program at all, in any way, shape, form or fashion. You'll deal with it long, long after you've finished all of the income section of the program and get to the Deductions & Credits tab. So don't concern yourself with that at this time until *AFTER* you have entered *ALL* of your income from *ALL* sources worldwide and are working through the Deductions & Credits tab. Otherwise, you *WILL* *SCREW* *THINGS* *UP*. I guarantee it.
