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First of all - if the same income is taxed in the US and abroad - the taxpayer may claim a foreign tax credit.
- to determine the amount of credit - the person should use the form 1116 and attach it to the tax return. - http://www.irs.gov/pub/irs-pdf/f1116.pdf
Here are instructions -
On your tax return - form 1040 -
the credit is reported on the line 48.
If the taxpayer travel to complete the sale transaction - these are selling expenses and deductible.
travels to maintain the property in prior years are deducted in those years,
The cost of improvement is added to the basis and depreciated.
But we need to be clear if that is a rental property?
Then - you definitely may add improvement expenses to the basis.
Repair and maintenance expenses may be deducted as investment expenses every year they are paid.
As the property was vacant - you might want to keep documentary proof that the property was NOT used as personal by you or your family members.
You would need that if the IRS will question deduction of investment expenses.
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