Hello,

I am on H1B Work Permit Visa working in USA since past 4 years. Last year I send around 55,000.00 USD to India through online remittance to my Uncle. He invested the money in purchasing a flat which is in my name. While filing Tax return do I need to declare this ? Sending money was not planned, but a bank in India refused to issue loan at last moment, so only option available with me to complete the transaction was to send money from here.

If you are renting the flat, you must declare the rental income (and expenses) on Schedule E.

However, if the flat was just purchased and is being used by relatives rent-free, then there is NO requirement to report on ANY U.S. tax return.

There are two forms that you should be aware of TD F 90-22.1 (also known as FBAR) and 8938 Specified foreign financial assets (SFFA). . Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
Also if you give gift of more than $13,000 to any person, you must file gift tax return.

Hello

Mukta, thanks for the response. As I am on H1B work permit visa and I think these forms are applicable to US Citizens or GC holders. So, am I required as well to submit these forms to IRS while filing returns ?

mehulc - since your uncle bought the flat in your name (meaning you own the flat, not him) then this is NOT a gift, so need to worry about any gift tax forms. As ATE says - what you have doen is not a taxable event as far as the US is concerned.

The forms TD F 90-22.1 (also known as FBAR) and 8938 Specified foreign financial assets (SFFA) must be filed even by persons you are resident for tax purpose as well nonresidents you file joint return as residents.
FBAR must be filed if on any day in 2011 your net balance in all foreign accounts (including mutual funds) exceed $10,000.

Thanks MuktaA, Ebaines, ATE for the responses.

Please correct me if my understanding is not correct

TDF90-22.1 (FBAR)- I am not required to file as I do not hold any bank account outside US. That's why I had to send money to my Uncle's name

Gift Tax Forms - I am not required as flat is owned by me

8938 Specified foreign financial assets (SFFA) - I will have to file this form, as for tax purposes I am considered as resident alien (as I stayed more than 180 days period) and amount that I send is more than $50,000.00 threshold ?

Quote:

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Originally Posted by MukatA

The forms TD F 90-22.1 (also known as FBAR) and 8938 Specified foreign financial assets (SFFA) must be filed even by persons you are resident for tax purpose as well nonresidents you file joint return as residents.
FBAR must be filed if on any day in 2011 your net balance in all foreign accounts (including mutual funds) exceed $10,000.

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The threshold for Form 8938 is $50,000 at the end of the year or $75,000 at ANY time during Calendar Year 2011. This is for a SINGLE person.

If you are married, the JOINT thresholds are $100,000 at the end of the year and $150,000 during ANY time in 2011.