@Nitabai , whereas TurboTax ( like most other service providers ) does not specifically call out "sale of foreign realestate", there is sufficient Q&A to do the needful. Below I list what you have to do :
( Note I do not know which foreign country the property/ asset is in for purposes of Tax Treaty consideration ).
Assuming that you are a US person ( citizen/ GreenCard / Resident for Tax purposes :(
(a) Tell TurboTax that you have sold a capital asset --- it will walk you through either sale of main residence or income property-- depends on your answers
(b) You will need the dates of Acquistion & Sale, how acquired, Cost of acquisition , Sales Price, cost of any improvements during ownership, any allowable depreciation ( accumulated over the years as income prop. ); Sales expenses ( such as commission, repairs etc. just for sale; transfer tax etc. etc. ).
(c) Once you have all these bits of info entered , TurboTax will compute the gain/loss on the transaction per US tax laws. Note that any allowable depreciation affects will be taken into account ( accumulated depreciation increase the gain on the sale and also treats the amount as ordinary income in case of gain, the rest of gain is given capital tax treatment ).
(d) Now under the " Deductions and Credits " tab , go down towards the bottom of the drop down list of items and select " Foreign Tax Credit ". This is where you enter your total gain as foreign source income and the total taxes paid to a foreign taxing authority as Foreign Tax paid/accrued.
Note that what you are getting ( assuming that the double taxation clause is in the treaty), a reduction of your US taxation, based on US ta laws -- it may or may not be equal to what you paid ( the unallowable portion of Foreign Tax is carried forward or back to other years with foreign source in come ).
This is the general answer. If you need more details on how to do this , you can add your details here or PM me ( NO Personally Identifiable Information) with the details of the situation.
Is there more i can do for you ?
