How do we get credit for the Canadian capital gains tax we paid when we sold a second residence that we owned in Canada?

[KarenJ]

The gain is calculated by translating the purchase price using the exchange rate on the date of purchase, the cost of capital improvements using the exchange rate on the date the improvements were made and the exchange rate to USD on the date of the sale.

There is a secondary calculation if you had a foreign mortgage on the home  you sold. 

The Exchange Rate Gain from paying off a mortgage denominated in a foreign currency is treated as a separate transaction and is calculated by translating the amount of the loan using the exchange rate at the time the loan was originated and the exchange rate at the time the loan was paid off. The resulting “gain” is taxable as “ordinary income”

Once you have entered your sale in TurboTax:

To report your Canadian tax paid on your home sale for foreign tax credit:

1. Click on Deductions & Credits
2. Scroll down to Estimates and Other Taxes Paid
3. Scroll down to Foreign Taxes
4. Click 'Yes" you paid foreign taxes
5. Click through the screens regarding foreign interest and dividends
6. Click yes that you have reported all your foreign income already in TurboTax
7. Click that you want to take a credit
8. Answer question about the Simplified Limitation Election
9. Choose income type for home sale - it will be Passive income
10. Add Canada as the country
11. Enter description -Canadian Home Sale
    
12. Enter Income amount that you previously reported in TurboTax- Please make sure you enter the sales proceeds and not the net gain
    
13. Enter your taxes you paid on your foreign retirement in the box "Other income"
14. Continue through ALL the foreign tax credit screens until done.