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    rams4680's Avatar
    rams4680 Posts: 7, Reputation: 1
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    #1

    Sep 25, 2009, 01:42 PM
    Reporting US taxable income
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Sep 28, 2009, 11:19 AM
    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.
    rams4680's Avatar
    rams4680 Posts: 7, Reputation: 1
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    #3

    Sep 28, 2009, 12:57 PM

    Hello,

    Thanks a lot for your advice. I have sent in the FBAR forms with details of the overseas accounts.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Sep 28, 2009, 01:04 PM
    Glad to help! If you included ALL of the accounts on your last FBAR submission, then you should be good to go!
    rams4680's Avatar
    rams4680 Posts: 7, Reputation: 1
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    #5

    Sep 28, 2009, 01:37 PM

    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    Sep 29, 2009, 08:16 AM
    Rams:

    If the NRO account is in YOUR name, then it should be included in the FBAR in my opinion.
    rams4680's Avatar
    rams4680 Posts: 7, Reputation: 1
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    #7

    Sep 29, 2009, 08:30 AM

    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #8

    Sep 29, 2009, 08:44 AM
    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.
    rams4680's Avatar
    rams4680 Posts: 7, Reputation: 1
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    #9

    Sep 30, 2009, 01:43 PM

    Thanks for your prompt advice.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #10

    Sep 30, 2009, 01:59 PM
    Glad to help!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #11

    Oct 1, 2009, 11:44 PM

    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).
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