Myself and my wife are green card holders .my son,a us citizen gifts us some shares which we sell from time to time and use proceeds for our personal expenses.This totals around $11000 for 2006.
In addition myself and my wife have indian income mainly from dividend and interest and also income from my small busuness.Taxes are paid by us. In india.I want to know how this income and usa income will be treated for taxes in usa and what is tax rate in us for our indian income.
I have not paid any tax so far in usa.Please clarify.

If you are a Green Card holder, then ALL of your wordl-wide income is subject to U.S. income taxes.

The value of the shares is a gift from your son and is NOT taxable. However, you must report the sale of the stock using Schedule D. The basis for the stock is what your son paid for the stock. The profit is capital gains and must be reported as income.

The dividend and interest income, plus the net profit from the business, must also be reported. Any taxes paid to India can be claimed as a credit using Form 1116.

Recommend you get professional tax help. If you want to use my services, contact me at the email address below.

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