Ask Experts Questions for FREE Help !
Ask
    mehulc's Avatar
    mehulc Posts: 3, Reputation: 1
    New Member
     
    #1

    Apr 3, 2012, 10:10 AM
    IRS tax return and remittance
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,771, Reputation: 846
    Senior Tax Expert
     
    #2

    Apr 3, 2012, 02:52 PM
    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.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Apr 3, 2012, 08:14 PM
    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.
    mehulc's Avatar
    mehulc Posts: 3, Reputation: 1
    New Member
     
    #4

    Apr 3, 2012, 08:40 PM
    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 ?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #5

    Apr 4, 2012, 05:51 AM
    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.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #6

    Apr 4, 2012, 07:53 AM
    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.
    mehulc's Avatar
    mehulc Posts: 3, Reputation: 1
    New Member
     
    #7

    Apr 4, 2012, 08:16 AM
    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 Originally Posted by MukatA View Post
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,771, Reputation: 846
    Senior Tax Expert
     
    #8

    Apr 4, 2012, 08:57 AM
    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.


Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Will the IRS contact you regarding your amended return [ 4 Answers ]

I filed a amended return at the beginning of April and I was wondering if the IRS will send out a letter or something to let me know if there was anything wrong with it or if it was processed successfully. I believe it has been 6 weeks now.

How to get a copy of an old tax return from the IRS [ 0 Answers ]

The best advice is to always make a copy of your return and keep it secure for at least seven years. But if you need to get a copy from the IRS, you can get information from a previous return in a format known as a transcript for free - request a transcript by calling the IRS at 1-800-829-1040,...

IRS sent back Tax Return: 1040 or 1040NR for aliens? [ 2 Answers ]

I am writing about a problem I am having with the Tax Return that I filed last April (fiscal year 2007). I am an Italian citizen, arrived in the US on a J1-Research scholar visa on Sep 4, 2005, to perform research in astrophysics at an institute that is part of a national museum, while enrolled at...

What happens when you owe more tax when you are on a tax payment plan with the IRS? [ 4 Answers ]

If I am currently on a payment plan with the IRS and in the agreement it states that your are not to owe any more taxes while in the payment agreement... what happens if I do owe for the current year. I am paying off 2004 taxes and now I owe for 2007... what is going to happen? It will default my...

How I can fill tax return wihtout my wife ITIN # and show her at my tax return [ 4 Answers ]

I'm a h1 visa holder living New York and my wife joined with me she has h4 visa When I fill this year tax return I want to get benefit how I can get ITIN # for her Yes I know about W-7 form but it's very confision Give me some info please step by step Thanks


View more questions Search