I am a U.S. citizen living in Germany and would like to sell some movable property at a higher price than I bought it for. I held it for longer than a year, so I am not subject to German taxation. U.S. taxes for the same situation are 15% capital gains.
The U.S.-German tax treaty Article 13 paragraph 5 says:
Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.
Which applies to me? Do I have to pay the 15% capital gains tax to the U.S. because I am a citizen, or do I pay nothing because of the treaty?