Forms needed for foreign primary residence sale

[thedude2741]

Good Morning/Evening, 

In 2023 we sold our primary residence (lived in more than 3 years) and now it's tax season. We did pay a tax on the sale in the local currency. Our capital gains from the sale were less than $80,000. During the process we had to use our locally acquired foreign bank to accept the money from the sale of the home. Therefore, the value of the account was well over $10k at some point in 2023. 

I'm just curious if I'm missing any forms that are needed for this year. 

I'm tracking: 

- FICEN Form 114 (FBAR)

-8938 Statement of specified assets

Since I paid foreign taxes on the sale does that qualify me for Foreign Tax Credit? 

I also read since I had money in foreign accounts that I must file on paper. Which is fine, I just want to be sure i'm not missing any paperwork.

Thank you! 

[DaveF1006]

Yes, you do have a FBAR reporting requirement since the funds were deposited in a Foreign Bank Account.  Turbo Tax does not handle FBAR reporting but you may report this here.

For the 8938, you would file if The aggregate value of your specified foreign financial assets is more than the reporting thresholds that applies to you:

• Unmarried taxpayers living in the US: The total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year
   
• Married taxpayers filing a joint income tax return and living in the US: The total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year
   
• Married taxpayers filing separate income tax returns and living in the US: The total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

Yes, you would be eligible for the foreign tax credit since you paid foreign taxes on this. As far as filing electronically, if you have a 8938, you would be able to file electronically. If not, you can still file electronically since the FBAR is not part of the Turbo Tax reporting process.

 To report the sale of your home, go to:

1. Sign in to TurboTax and select Pick up where you left off.
2. Select Search, enter sale of home, and select the Jump to link in the search results.
3. Answer Yes to Did you sell or have your home foreclosed in 2023?
4. Enter the address of the home you sold on the next screen, and Continue.

To report the foreign tax credit.

1. Go to Federal
2. Deductions and Credits 
3. Estimate and Other taxes paid
4. Foreign Tax Credit>start or revisit