US resident sold house in Puerto Rico, received form 480.6C showing house sale +tax withheld for non resident. Is this reported on 1040 & credit taken for withholding?

[workingtoolong]

Taxpayer is US resident, sold vacation home in Puerto Rico

[itonewbie · Accepted solution]

The capital gain is sourced to Puerto Rico but also taxable in the US although a foreign tax credit will be allowed for the tax paid or accrued.  My understanding is that 480.6c is only a withholding certificate; taxes were withheld on gross income but the actual nonresident liability is to be determine on the nonresident tax return based on gain realized.