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If the individual is a US person (citizen or resident) their world wide income will be taxable to the US. They would be allowed to use foreign tax credits or any treaty provisions but the sale would be reportable .
Capital gains is on the gain. So, if the property basis is 100 and the sale is 300, the gain is the difference (200)
So if she sells it now, and then buys it back, then the gain would be 100 (cost basis being 200)?
If she sold and then repurchased the gain would be the difference in basis (purchased price) and sale
Ok, so if she sells it for 200 and buys it back for 200, then her cost basis is 200?
That is correct
That is, before she has her dual citizenship.
and what forms does she needs to report it, Sched D, cap gains?
That is correct, the sale would be reported using Schedule D
The gain is then carried to the 1040 form
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