If you sold a foreign property you must calculate the gain or loss according to the following instructions.
- Calculate the purchase price using the spot rate on the date of purchase to determine the USD cost on that date.
- Calculate the sales price using the spot rate on the date of sale to determine the USD price on the sales date.
The difference between the USD amount on the purchase date and the USD amount on the date of sale, is the gain or loss that is calculated.
If you meet the requirements for a home sale exclusion, you may be able to exclude from tax up to $250,000 gain if single and up to a $500,000 gain if you are married filing jointly and you both lived in and owed the home the last 2 out of 5 years.
https://www.irs.gov/publications/p523
If you settled a mortgage when you sold your home, you will have a mortgage gain or loss. Use the exchange rate on the date the mortgage was taken out and use the exchange rate on the date the mortgage was closed. The difference is a gain or loss. If it is a gain, it is taxable as ordinary income. If it is a loss, it is considered a personal loss and is not deductible.
You would report the sale of your home by entering home - sale of home in the search box at the top of your screen and click on Jump to
You will need to enter your foreign tax paid by entering in the search box at the top of your screen
foreign tax credit
and click
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