Assuming you are a U.S. citizen or permanent resident, any gain you realized is taxable to you by the U.S.
Calculating Capital Gain
The difference between your net sales price and your cost basis (adjusted for improvements and depreciation) is your capital gain.
Your net sales price is the contract selling price less any selling costs (i.e. broker commissions and other transaction costs).
Your cost basis is determined by taking your original purchase price (plus any non-recurring closing costs) and adding the cost of any improvements made during ownership and then subtracting any allowable depreciation (whether claimed or not). If you inherited the property you would claim as your acquisition cost the value for the asset claimed in the decedents estate tax return. If no estate tax return was filed then you use the fair market value of the asset (supported by an appraisal if not readily determinable) as of the date of death.
If you own the property for more then one year, then the gain will be treated as a long-term gain and will be taxed up to a maximum capital gain rate of 15% (5% if the gain would otherwise be taxable in the 10% and 15% brackets). Otherwise the gain is treated as a short-term capital gain and to the extent not offset by other capital losses will be considered as ordinary income the same as wages and interest subject to whatever your marginal tax rate is. Don't forget state taxes.
Foreign Tax Credit
You may be able to take as a U.S. tax credit any income taxes you paid to a foreign country on gain realized on the sale. Any estate taxes paid to a foreign country attributable to the property may also be added to its cost basis.
Generally, only income taxes paid or accrued to a foreign country or a U.S. possession, or taxes paid or accrued to a foreign country or U.S. possession in lieu of an income tax, will qualify for the foreign tax credit. Qualified foreign taxes do not include taxes that are refundable to you or taxes paid to countries whose government is not recognized by the United States.
You can choose to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction. To choose the deduction, you must itemize deductions on Form 1040, Schedule A. To choose the foreign tax credit you generally must complete Form 1116 and attach it to your Form 1040 (http://www.irs.gov/pub/irs-pdf/i1116.pdf).
The amount of the foreign tax credit will be the smaller of the amount of foreign tax paid or accrued, or the amount of United States tax attributable to your foreign source income. This limit is computed separately for each type of foreign income.
If you cannot use the full amount of qualified foreign taxes paid or accrued, you may be allowed a 2-year carryback and then a 5-year carryover of the unused foreign tax.
You may not take either a credit or a deduction for taxes paid or accrued on income you exclude under the foreign earned income exclusion or the foreign housing exclusion.
With respect to the foreign tax credit you may want to chack out IRS Pub 514 at http://www.irs.gov/publications/p514/index.html.
Because it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.