@pk Thanks for your detailed explanation. Here are my follow-up questions.
1. When determining cost basis, how do I convert the amounts paid to the builder in INR into USD? Do I have to use the then conversion rates? I got an apartment as gift from my brother, but he originally paid between 2006 and 2008. Where do I get the rates for all those years?
2. I sold the apartment in Jan 2024, so the proceeds needs to be calculated using 2024 conversion rates. Correct? And I got lucky with the timing of the sale, I already reported this sale on my India return.
3. Instead of figuring out the older conversion rates, can we use the indexed purchase price and use 2024's conversion rate to determine cost basis?
4. If I happen to use older rates, the profit is going to differ from what I reported on my India return. If the US happen to compare these returns, the numbers may not match. Is that fine?
Thank you.
