Hello!
I sold few properties in India between April 1, 2024 and January 15 2025. These will be reported in the Indian Income Tax Return to be filed before June 30, 2025.
Which year's tax return do I report them in the USA? Do I report the 2024 India sales in the 2024 US tax return and then the 2025 India sales in the 2025 US tax return? Or do I report all 2024 and 2025 India sales in the 2025 US tax return?
Please advise.
Thanks
Venky
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(a) US taxes being based generally on Calendar year, your world income ( assuming you are a US person -- citizen/GreenCard / Resident for tax purposes) for the US Tax year needs to be recognized. Thus if the first property was sold ( sale completed / closed ) during any day of 2024 , then US purposes you report the disposal on your 2024 tax return.
(b) Note that your loss/gain computation is per US tax laws ( there is no indexing of basis as in India ).
(c) If and when your Indian tax is settled , you have to allocate the tax that was paid on the first property ( 2024). Only then can you take advantage of foreign tax credit. If you need help on this , let me know and I can go over this aspect.
(5) The property sold in 2025, will be similarly reported/recognized on the 2025 tax return ( filed in 2026 ).
Is there more I can do for you ?
@venkyd Namaste ji
pk
(a) US taxes being based generally on Calendar year, your world income ( assuming you are a US person -- citizen/GreenCard / Resident for tax purposes) for the US Tax year needs to be recognized. Thus if the first property was sold ( sale completed / closed ) during any day of 2024 , then US purposes you report the disposal on your 2024 tax return.
(b) Note that your loss/gain computation is per US tax laws ( there is no indexing of basis as in India ).
(c) If and when your Indian tax is settled , you have to allocate the tax that was paid on the first property ( 2024). Only then can you take advantage of foreign tax credit. If you need help on this , let me know and I can go over this aspect.
(5) The property sold in 2025, will be similarly reported/recognized on the 2025 tax return ( filed in 2026 ).
Is there more I can do for you ?
@venkyd Namaste ji
pk
Thank you PK.
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