Thanks DaveF1006.
If North Carolina state does not give me foreign tax credit then does that mean that the entire capital gains would be taxed again in North Carolina despite me having paid tax on it in another country? If yes, would it be like ordinary income or at a long term gains tax rate?
For scenario 2, by investing in Bonds, I meant that I would invest all my capital gains in Infrastructure bonds in that country for 5 yrs and that would make my capital gains tax free (income on bonds would be taxable) as per the tax laws in that country. How would IRS and NC state treat my gains in that case?
Thanks again,
