Disposition of property question

[CUSO]

My client sold inherited property in Ireland.  They processed the transaction and Ireland withheld capital gains tax. 

My question is how do I get their foreign income tax credit to apply toward the capital gain transaction?  I can fill out the 1116, however I don't know how to get it to offset the capital gain where tax was already paid so they are not double taxed on the transaction. I use ProConnect Tax Online if that helps! 

Thank you! 

[BobKamman]

Was the capital gain calculated at the time of sale?  Or was the withholding a flat percentage regardless of whether there was a gain or loss?  Ireland uses FMV at date of death for cost basis.  You may have to file an Irish tax return to know how much credit is allowed on US taxes.  

[CUSO]

It was accurately calculated and withheld at the time of sale by a Solicitor.  

I am struggling at the moment because I have the capital gain entered into schedule D, however I can’t get the foreign tax credit 1116 to apply the credit to the return.  

Would it be inaccurate to just adjust the income?

[sjrcpa]

"Would it be inaccurate to just adjust the income?"

Yes

Print the 1116 and instructions and fill it out by hand. Then back in to the software. Unlike foreign tax withheld from dividends, it's tricky to get other types of income coded as foreign in the software 

If the capital gain on the 1040 was taxed at -0-%, there won't be a foreign tax credit.

[CUSO]

That was good advice!  I have a second problem that has come about as a result of this.