First, thanks for the help! I am a phd student in the US who is filing yearly tax returns as a NON-RESIDENT ALIEN. As I understand, after 5 years usually, I start filing tax return as a RESIDENT ALIEN, and all the resident tax rules will apply to me.
My question is - if I purchased a stock while filing as a NON-RESIDENT ALIEN, and sold it (with a capital gain) while already filing as a RESIDENT-ALIEN, what tax rate will apply to the capital gain? (given that I held the stock long term - meaning more than a year)
I know that as a NON-RESIDENT, a 30% flat tax rate applies to capital gains (saw it in previous tax returns...), but as a resident, given its a long-term capital gain, only a 15% tax rate applies.
So which tax rules apply? The ones when I purchased the stock, or the current ones when I am selling it?
Also, if some of you guys know anything about status of phd students - If I study here for 5 years and then take a job in the US, so I stay in the US for more than 5 years (Where I stay in the US each full year, and not part-time), I understand that after 5 years I begin filing tax returns as a RESIDENT ALIEN, correct?
Thanks a lot!!