@SORCH , since you have already familiarized yourself with 1031 like-kind exchange, I assume that you do understand the need for a qualified intermediary if you do anything but direct exchange. I have done quite a few 1031s in my time of owning rental realestate in the USA ( uncomplicated by exchange rate movements ). There are three kind of exchanges : (a) direct where one or more assets are exchanged contemporaneously i.e. buyer and seller do the paperwork at the same time in the same place ( generally) with r without money exchanging ( boot). I never did this and is not the most common.; (b) forward 1031 where the seller relinquishes the title to an intermediary, whom sells the property and holds all the monies. then when the relinquisher has identified a new prop . within the required six months affects the purchase, and then hands over the title of the new property to the relinquisher -- thus meeting with the contemproneous requirement ( in a roundabout way); (c) and lastly the reverse 1031 --- here the relinquisher purchases the new property through the QI, title rests with the QI, then sells the relinquished prop -- as in (b) above.
AS I said before I am leery of doing this 1031 with foreign prop. , especially in a country 1031 type of delayed tax recognition is not common / legal, in addition to the exchange rate uncertainty. 1031 only delays gain recognition and in this case would be subject to the vagaries of the US$ / INR exchange rate. A second issue would be the proper handling of the depreciation accumulated in the relinquished prop. / asset and segregation of the new and/or additional depreciable basis with new term. Can all this be done -- absolutely yes. Would this be beneficial in the long run -- I don't know and only you can judge this based on the work, professional help ( may be ? ) and your own long term goals.
BTW -- on going through your answers , I have a few more questions -- 1. Did you recognize the depreciation for the rental property once you started filing form 1040 in the USA ; 2. How did you select the depreciable basis of the prop for US purposes; 3. was the property available for rent all through out from 2018 (?) or just that renters came and went , not always rented out but was indeed available to rent ??
Agree with @Anonymous_ 's all responses to this post/ subject as also with all the others above ( and mentioned in my earlier response)
Is there more I can do for you ?
BTW -- in your answers please do not include any Personally Identifiable Info ( this is public board) and if your answers / questions go beyond items of general interest, you can always PM me and I will respond outside the board.
pk
