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venkyd
Returning Member

how to report real estate sales in india on us income tax return

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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Accepted Solutions
pk
Level 15
Level 15

how to report real estate sales in india on us income tax return

 

(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

View solution in original post

2 Replies
pk
Level 15
Level 15

how to report real estate sales in india on us income tax return

 

(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

venkyd
Returning Member

how to report real estate sales in india on us income tax return

Thank you PK. 

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