@ggavish , using the general principle of taxation by US for Non-Resident Aliens (NRA)and specifically based on US-Israel Tax Treaty, a property situated in Israel and disposed of by an Israel Person is taxable ONLY by Israel . Even if the Israel citizen, becomes a US Person ( Citizen / GreenCard / Resident for Tax Purposes ) Israel still get to tax the proceeds / income from alienation of real property situated in Israel. US may also tax a US Person but the double-Taxation clause will come into effect and thereby reduce the tax bite.
May I also suggest that if at all possible the NRAs enter the USA by the 31st. of December of the year -- that way for the following year they will be able to use Standard Deduction ( instead of Itemized deduction because of short tax year ) --- the residency of a Green Card holder starts on the first full day of presence in the USA.
Is there more I can do for you ?
If you are satisfied with the answer then you are welcome to upvote and/or accept the answer . If not tell me how I can earn that
pk
