Hello Atlanta Tax Expert and others,

My Situation
I am currently on an h1b work visa with green card application pending (should be receiving GC by end of 2012).

I own a home in the US which is my primary home/residence. I also invested in a house in India.. mortage was taken from a local bank/financing company in India and I remmitted money to a NRI (non resident Indian) bank account in order to pay the monthly mortgage. I filed the TDS-F form with the Treasury Dept whenever the balance in that non-resident-indian account went above $10,000.
I did not claim any credit/deductions whatsoever on my IRS tax returns. Recently my parents helped me pay off the home loan by gifting me an amount of money. They accounted for the gift appropriately as part of their tax returns in India. The gift was made by paying off the bank directly to clear my loan.

Question 1) - Do I have any tax obligations here in the US with respect to having received the gift above to pay off the home loan? Is there any information to be included on my US tax returns?

Question 2) - After the home purchase and now the loan being cleared, my parents reside in that home I own in India and I do not earn any rental income. Is there any tax obligation I have since I own property abroad or am I good until I earn any profit from selling that home.

Thanks in advance

Question #1: No, you have tax obligation for the money you received as a gift, especially since the giver is NOT a U.S. resident.

Question #2: As long as you are NOT receiving rent, you are good, provided the VALUE of the rent-free housing you are GIVING to your parents does NOT exceed $26,000 per year.