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    pbiswas13's Avatar
    pbiswas13 Posts: 3, Reputation: 1
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    #1

    Apr 6, 2017, 01:02 AM
    Form-8854 Part-V
    My wife and I are citizens of INDIA (former US green card holders). We both moved to INDIA in May 2013 and living in INDIA continuously and paying taxes in INDIA.

    We got our green cards in 2009. When we were in USA, we always paid our taxes in USA and filed income tax returns (married filing jointly) in timely manner. Even after moving to INDIA in 2013, we have been properly and regularly filing our US tax returns and FBAR and showing our global income.

    · I surrendered my green card in 2015. So, I had my green card for total 7 years (including 2009 and 2015). For year 2016 I am just sending my “Residency Termination Statement” to IRS and not filing any tax return. I understand I do not have to file Form-8854.

    · My wife surrendered her green card in 2016. So she had her green card for total 8 years (including 2009 and 2016). She will be filing her 2016 tax return as married filing separately (since I am non-resident in 2016). She will file Form-8854 and fill-up Part-I, Part-IV and Part-V.

    O In Part-V (Balance Sheet and Income Statement):
    O 1 Cash, including bank deposits:
    What should be entered for (a) FMV, (b) US Adjusted basis ?
    Note that my wife has always been homemaker. She only has few bank
    accounts jointly with me. Whatever money we have in those accounts, we
    already paid taxes on those.
    O 16 Real property located outside the United States:
    We bought a home in INDIA in 2015. My wife jointly owns it with me.
    What should she put in (a) FMV, (b) US Adjusted basis ?

    Regards,
    pbiswas13
    max12312's Avatar
    max12312 Posts: 1, Reputation: 1
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    #2

    Apr 6, 2017, 11:40 AM
    What ?

    Wghat/
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Apr 6, 2017, 02:03 PM
    Look at the AGI and asset requirements in the instructions for Form 8854. Once you review that, you should come to the conclusion that Firm 8854 is NOT required.

    Just have her submit the Residency Termination Statement by 30 June 2017.

    If she has no earned income and only interest on her Indian bank account, it is likely that all she has to submit is one final FBAR for 2016, because her net income is LESS than her personal exemption of $4,050.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #4

    Apr 11, 2017, 05:59 PM
    Dangerous advice to not file the 8854. This would trigger the exit tax.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Apr 11, 2017, 07:16 PM
    I do not believe that to be the case. HOWEVER, my advice may have been premature.

    Intl Tax's warning does prompt me to ask about the level of income the OP had. If it is below a certain threshold, the Form 8854 is NOT required. If it is above the threshold, then in fact the Form 8854 may be needed.
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