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nataraja
Apr 5, 2007, 10:16 AM
I inherited a share of my grandfathers property in India which was sold by mutual consent of the owners very recently. I intend transferring the proceeds to the US after paying Capital Gains Tax in India.

How will this accrual of funds be viewed by the tax authorities in the US. I am a US born US citizen.

How can I minimise my exposure to US taxes and can I claim relief against the 23% Capital Gains tax to be paid in India.

How does the dual taxation agreement between India and the US benefit me ?

AtlantaTaxExpert
Apr 16, 2007, 12:05 PM
Since it is an inheritance, it is NOT subject to U.S. taxes.

Depending on the amount of money transferred, it MAY draw the attention of the IRS, who will ask you to explain it. If you have the appropriate documents to explain the origins of the money transferred, you should have no problem.