The property would be subject to capital gains in the US, however you would be able to claim a foreign tax credit for any Indian taxes paid on the same income.
If you held the proeprty for more than one year, your max rate Federal would be 15% on the profit.
also of note, as a citizen, you should be wary you may need to file income taxes in 2006 and before, if you met certain income limits.
How would the capital gains be determined I mean it is based on what?15% of what?
Also, any signatory or ownership in foreign bank accounts and investment (not the home) should be reported each year on Form TDF 90-22.1
The 15% would be on the profit, so the sales price less selling costs and you adjusted basis
if a personal residence, would be reported on Schedule D, if a rental property, would be reported on FOrm 4797
Does this answer your question?
How would the profit be determined?
how much did you buy it for?
$10K would be your profit, less any selling expenses
Also the reporting of foreign bank accounts is with regard to accounts outside the US
purely informational, but very important
Also since I havent reported this property or the bank accounts in the past how do I do it now????
The property is not reportable, unless it was a rental
You should see a local tax professional to assist you with the proper reporting for past years
No it was not rental but personal
so no reporting requirement
also what about bank accounts?
Yes, should be disclosed on a Form TDF 90-22.1 for each year
what about past years
each year, yes
since i havent done it for previous years how do i do it now would there be any penalty if i report now
there is a current safe harbor. I would strongly suggest seeking the advice of a local tax professional to go over your specific private information