I am an US Citizen. After our mother passed away in 2021, we sold our inherited real estate property in India in 2023. My share of the proceeds was $120K, out of which $30K tax was deducted at source by the government, leaving me with $90K net. Out of this, I transferred $80K to the US in 2023.
My share of the sale proceeds is Indian Rupees 9,925,000. Using IRS table for average exchange rate for USD to INR in 2023 (INR 82.572 = USD 1), this translates to $120K.
The FMV for my share in 2021 would have been Indian Rupees 9,375,000. Using IRS table for average exchange rate for USD to INR in 2021 (INR 73.936 = USD 1), this translates to $126K.
Although the property price appreciated in 2 years in Indian Rupees, it actually depreciated in USD. Should I report a loss as a result of this transaction?
I am aware I need to file an FBAR. Do I also have to file forms 8938 and 3520? I am married filing jointly in the U.S.
Appreciate a response.
TurboTax user since 2003.
