Hello,

I recently got to know US residents ( I'm on H1B visa) have to file TDF90 if they had foreign accounts >10k/yr. I had opened 2 accounts in India in 08, NRE & NRO. My NRE had money funded from my US account to fund for pucrchase of new house in india. Had opnened NRO as got money from sale of property in india , I was part owner with parents , my share was 7 lakhs which I deposited into NRO and paid against loan taken for new flat and availed 54 exemption in India. I also received 4 lakhs as gift money from my mother and 5 lakhs from my wife ( her inheritance money) in NRO which also went towards new property. I have not shown the 3 NRO tranactions in US income since everything was valid from Indian tax angle( please confirm)? I had $8 NRE interest and $4 NRO interest which I did not show in US tax return as was unaware and not received any forms from bank. I did file the FBAR prior to Sept 23rd. Do you advide me to amend my tax returns to show interest income ?

Ramesh

Ramesh:

The interest income level of $12 is so low that amending your return to add it is not worth the effort. It is likely that no additional tax is due.

However, submitting an amended FBAR to include ALL of your foreign accounts is probably the prudent course of action given the IRS recent emphasis on submitting that form.

Hello,

Thanks a lot for your advice. I have sent in the FBAR forms with details of the overseas accounts.

Glad to help! If you included ALL of the accounts on your last FBAR submission, then you should be good to go!

Thanks, just wanted to also confirm that I had not included the NRO deposits in US taxable income , 7 lakhs from property sale in India was reinvested in another property , 4 lakhs was gift from parent and 5 lakhs from wife. Let me know if that is OK, a CPA I met confirmed it's fine.

Rams:

If the NRO account is in YOUR name, then it should be included in the FBAR in my opinion.

Hi sorry for the confusion, I have shown both NRO and NRE in the FBAR but I meant to confirm I had not included the amounts in the NRO account in my US taxable income also the 7 lakhs from the property sale was inheritance money my mother took care of the capital gain in India. Thanks

The only income that needs to be reported is the INTEREST earned in those accounts going forward, because amending past returns for interest less than $50 falls into the de minimus category of income which the IRS does NOT want to be bothered with.

Thanks for your prompt advice.

Glad to help!

rams4680:
In the U.S. the receiver of gift does not pay any tax or file gift tax return. Also there is no tax on inheritances.
Any capital gains must be reported on the U.S. tax return on schedule D (Form 1040).