I inherited a property from my mother after she passed away. The property is in India and I wish to sell it and invest it in infrastructure bonds to avoid capital gains tax in India.
I am currently a student in the US on F1 visa (nonresident alien for tax purposes). I came across this IRS page: https://www.irs.gov/individuals/international-taxpayers/the-taxation-of-capital-gains-of-nonresident-alien-students-scholars-and-employees-of-foreign-governments. I am not able to decide how to interpret this:
- A US source of capital gain will be treated as a foreign source if your tax home is not US
OR
- Foreign capital gains will be treated as US source if US is your tax home.
The first interpretation of course means that I do not have to report this in my US tax return but the second one suggests that I should.
Which interpretation is correct?
