Capital Gains Abroad Planner
Plan the timing and tax impact of selling foreign assets — real estate, stocks, business interests. Dual-country CGT, FTC optimisation, NIIT, and treaty treatment.
Assets to Sell
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Capital Gains Rules for US Expats
FEIE Does NOT Cover Capital Gains: The Foreign Earned Income Exclusion only applies to earned income. Capital gains — including from foreign real estate — are fully taxable in the US regardless of FEIE.
NIIT (3.8%): Net Investment Income Tax applies to individuals with MAGI above $200k (single) or $250k (MFJ). Applies to all capital gains, dividends, interest, rental income.
FTC on Foreign CGT: Foreign capital gains tax paid can be claimed as FTC (Form 1116, passive category). This is your primary relief from double taxation on gains.
Timing Strategy: If you have a low-income year abroad (e.g., just moved, FEIE covers earned income), realising capital gains that year means the gains fill lower US brackets.