How do tax treaties play into double-taxation on capital gains? In my case, USA-Latvia. https://www.irs.gov/pub/irs-trty/latvia.pdf
"The taxation of capital gains, described in Article 13 of the Convention, generally follows the rule of recent U.S. tax treaties, the U.S. model and the OECD model. Gains on real property are taxable in the country in which the property is located, and gains from the sale of personal property are taxed only in the State of residence of the seller, unless attributable to the permanent establishment or fixed base in the other State."
Does the above mean capital gains on sale of secondary home will be taxed by Latvia but not USA, or USA will still tax capital gains, but reduced by amount of Latvian taxes paid (which would increase the cost basis of the property)?
"ARTICLE 13 Capital Gains
1. Gains or income derived by a resident of a Contracting State from the alienation of immovable (real) property situated in the other Contracting State may be taxed in that other State."
USA is the contracting state and Latvia is the other contracting state, so
Thanks!
