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    qamaruddin's Avatar
    qamaruddin Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 6, 2012, 09:09 AM
    Double tax treaty between us and india
    I am a U.S. citizen. I had real estate property in India which was purchased in
    The year 1962. Recently I sold the entire real estate property. Because there
    Was a capital gain, I had to pay taxes in India. I have the following questions :

    1. Do I have to report this transaction in my U.S. Income Tax return ?

    2. If so, which tax form I have to report ?

    3. Do I get credit in U.S. for the taxes I paid to Government of India ?

    Thanks,
    Qamaruddin
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Oct 6, 2012, 10:18 AM
    Qamaruddin:

    Yes, U.S. citizens MUST report ALL world-wide income.

    You will report the transaction on Schedule D and Form 8949 on your 2012 tax return.

    If you paid taxes to India, you will request a Foreign Tax Credit on "pssive income" using Form 1116 on the same return.

    If you will need professional help filing this return, email at the email address in my profile (if you cannot see it below).
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