@dars_indi , while agreeing with @Anonymous , some items you should consider --- (a) basis in the property-- if bought , then cost of acquisition + cost of any improvements --- converted into US$ of the day; if inherited then it is the Fair Market Value on the date of death of the decedent + cost of any improvements; if gifted, then it is basis of the donor ( usually his/her acquisition cost + cost of improvements ) etc.; Note that India , unlike USA , indexes basis per CPI. (b) if the property was rented out while you were a citizen/resident( Green card ) / resident for tax purposes , then depreciation has to be recognized as part of the adjustment to basis.; (c) all costs related to sale of property are adjusted against the sales price ( commission / transfer tax / fixing up the property for sale etc. etc. ); (c) the gain per US computation, is taxable income -- any depreciation is treated as ordinary income and the rest of the gain may be eligible for capital gains tax treatment.
You fill out a form 1666 for dealing with foreign tax credit ( on income that has been taxed by foreign and US tax authorities ) but while all the foreign tax is recognized, the allowable amount is based on a ratio of foreign income to world income and any unallowed foreign tax can be carried forward and backward.
TurboTax will do all the work for you.
Namaste ji
