# Long term capital gain tax for US expat living in Japan



## Tom111

Hello,
I'm struggling to understand if I can avoid double tax for long-term capital gains as a US expat living in Japan.
I have both Japanese and US citizenship and I'm currently living in Japan.

I have exercised stock options(ISOs) that I earned when I worked for the US company in the US and I plan to sell them next year as a resident in Japan.

In this case, can I use foreign tax credits that I would pay for the Japanese tax agency for the US tax return?
The Japanese tax rate for capital gain is 20.315 % and the US long-term capital gain is at most, 20%(except net investment tax), so the rate is almost the same.

Does Article 23 3(c) in the US-Japan tax treaty accept it for the US citizen living in Japan?


https://www.treasury.gov/resource-center/tax-policy/treaties/Documents/japantreaty.pdf


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