If I sell a property in Mexico (no construction), do I need to report it in my Tax form and pay taxes on that sale even though I payed taxes of the sale in Mexico?

[Opus 17]

The taxes paid in MX are not selling expenses that adjust your gains.  They go on a separate form.  I'm not sure where that form is, but if you go to the Search box and type "foreign tax credit" , then select "Jump to" in the results, that should take you to the place in the program to report the foreign taxes you paid.

The credit is described here, by the way.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p514.pdf">https://www.irs.gov/pub/irs-pdf/p514.pdf</a>

[Opus 17]

The kind of taxes that do adjust your gains would be transaction taxes, not income taxes.  For example, in the county where I live in New York state, the seller is charged 0.5% transfer tax and the buyer is charged 0.75% transfer tax that goes to the county, not the state or IRS.  There is also a $50 fee to record a new deed and mortgage, and a mortgage tax of 0.25% of the mortgage (if there is a mortgage) that goes to the county as well.  Those are adjustments to the capital gains because they are considered additions to the purchase price or reductions in the sales price.

[jafloresl]

Makes sense, thank you very much. I appreciate your help.