Dear All,
We invested in an investment partnership in India. The investment partnership was a Limited Liability Partnership (LLP) and was managed by a "managing partner." We were "passive partners." It was a pooled investment as it had 26 partners who invested different amounts. Funds were invested in the Indian stock market. The investment partnership is similar to portfolio management scheme (PMS) which is very popular in India and a lot US Indians invest in PMS managed by an investment manager. PMS also invests in the Indian stock market.
Following is the info:
- Invested in local currency (rupees; INR): investment date: April 1, 2018
- Partnership was closed and investments were sold and on March 31, 2022
- LLP paid taxes in India on behalf of all the partners every year
- We reported the LLP info every year to the IRS; amount invested on April 1, 2018, and the net asset value (NAV) on December 31st. Didn't pay any US taxes because it was "unrealized capital gains."
- Have used US Treasury Reporting Rates of Exchange (2018 & 2022) to convert rupees into dollars
I am considering the gains as long term capital gains. Please provide your comments and suggestions about my approach. Regards, Dabu.
