How to report foreign capital gain for 2nd home and foreign tax credit
Is 2nd home exempt of gain?did not live in last 5 years.

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Originally Posted by hinassoc

How to report foreign capital gain for 2nd home and foreign tax credit
is 2nd home exempt of gain?did not live in last 5 years.

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Have your tax return done by an expert

If I had my way there would be no cap gains taxes and no deduction for a 2nd home. There would be a flat tax on incomes and tax 'experts' would need to do something else for a living .
Alas ;that is not the case .So yes ,consult a tax accountant .

You should post this question in the Money & Services > Taxes forum. But to answer your question:

You report the sale of the property on Schedule D. If the house was sold at a gain you will pay capital gains tax on that gain. If sold at a loss you can not take the loss but rather report a $0 gain (because you can't take a loss on the sale of pesonal property). However, if the property was rental property, and hence a business for you, the rules change - post back if that's the case.

As for foreign taxes paid - you have two options - you can either deduct foreign taxes paid on Schedule A or you can claim a credit for foreign taxes paid using Form 1116. If you use tax software such as TaxCut it will work through both options for you and recommend which is better. More info from the IRS on this topic here:
Foreign Tax Credit - Choosing To Take Credit or Deduction