I sold real-estate in India in 2020. I inherited this property jointly with my sibling who is an Indian national. We inherited this property with the passing of our mother in 2016. However, the real-estate actually got transferred to our names in 2018. Value of this property has depreciated in both US$ and actual terms since we inherited in 2016.
I have paid Indian taxes that were due on the capital gains accrued from the time my parents had acquired this property in 1970s.
My understanding is that under dual taxation treaty between India and USA, real-estate taxation falls under the jurisdiction of the country where the property is located. In this case it would be India.
I will appreciate if I can get clarification on following:
1. Do I need to declare this sale on my 2020 Tax Return?
2. Do I have to pay any additional taxes on this sale? If so what would be the cost basis?
3. Is my understanding correct that under Indo-US Treaty this real-estate falls under Indian jurisdiction?
Thanks in advance for your help.
RJ
