Thank you for your feedback and your message. Kindly allow me the follow-up:
1. Since I am paying 25% capital gains taxes in Portugal, and given there is a tax treaty between Portugal and USA, do I need to pay taxes on this sale in the US?
2. I am assuming the answer to 1) is "no" but I need to declare it. Hence, most likely there is a Form of some sort to fill-out in my 2025 taxes, whereby I declare the total profit and state the capital gains taxes already paid in Portugal, thereby amounting to zero what I pay to the IRS. If so, what is the Form?
3. I am assuming that capital gains on long term property are taxed at 20% in the US (https://www.irs.gov/taxtopics/tc409). If I pay 25% taxes in Portugal, will the extra 5% (i.e., 25% PT - 20% US) somehow be factored into my US taxes? (i.e., lower my US taxes)
Thank you!
