# Capital gain while living abroad



## expus (5 mo ago)

I have a domain name which I had bought when I resided in USA. I reside in a foreign country since several years. Someone just made an offer to buy this domain. If I sell it, I understand that my tax will be based on : sale price minus the registration price minus total of renewal fees I paid over the years.

And since I reside abroad I will pay the tax to the country I live in.

Question 1) But while doing US tax, can I deduct this foreign tax that I will pay from US income tax liability? This doesn't count as earned income, I understand, but still I can deduct the foreign capital gains tax, from US capital gains tax right? (and if US tax ends up lower I owe nothing to US, but otherwise I pay the difference to the US?)

Question 2) And just for the future, the same concept applies to any capital gains from buying and selling of anything right? I mean I pay to my country of residence and then deduct this tax from US capital gains tax ?


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