1) Jerusalem is legally a corpus separatum. She belongs to neither side. The world community recognizes Tel Aviv as Israel's capital, which is why the embassies are there. 2) Jerusalem is outside of Israel's borders. Israel excluded her, when she declared borders in 1947.
Nusra Front in Syria says it has detained U.S.-trained rebels (Reuters)
from the article: U.S. appeals court hears 'Jerusalem is Israel' passport case