Hi, I am a resident alien for the last 3yrs and I have a foreign property (own house - single family home, not an apartment) in which my parents have been living for the last 10yrs or so (renting). That's my second home as primary is in US and has no mortgage. I missed filing/declaring that foreign prop and claiming income & depreciation in the last 3yrs since I got the green card. I planning to streamline it going forward.
Given this situation, my questions are -
- How do I start it now and cover the last 3yrs? what all info is required ? Or can I only do last year ?
- In which section of IRS would I file it in Turbo tax? What additional forms are needed to submitted ?
- Are there any proofs to be submitted like monthly rental income receipts (or bank statements) with tax filing ?
- Do I have to notarize any of those proofs before submitting ?
- Does Turbo tax Premier suffice to do this ?
Appreciate some guidance on this..
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To clarify, are your parents renting the home from you and you receive income from them?
YES, they are !
To clarify further, did you file a return for years 2021 & 2022?
Yes, I filed my returns but forgot to report the foreign property details and depreciation..
@Vish_GKA , Having read through your post and the rep[l;ies/ questions from my colleague @DaveF1006 , I am still confused what you are trying to do. Generally , I would have assumed that your ;parents live in your foreign ( India ? ) property and pay very little -- not the standard fair market rent. If that is the case then you cannot claim this as income property. Therefore I need to understand what you want to achieve -- pay taxes on income from that foreign property & take advantage of depreciation ? Note that while depreciation helps you now reduce your tax burden, when you sell the prop. any gain up to accumulated depreciation is taxed at your marginal rate AND not at capital gain. Also your basis in the property is reduced by the accumulated depreciation allowable ( whether you took it or not ) , thus increasing your gain. Do you really want to do this considering that it is within the family.
I will circle back once I hear from you
pk
Hi pk - Reducing the tax burden with foreign property depreciation is the goal. I understand what you are saying about the impact at the sale time. But my primary Q right now is how to claim the last couple of years that I didn't do and which section of forms in Turbotax to be used for that ?
Thanks !
You need to amend your 2021-2022 tax returns. If you filed with Turbo Tax in 2021-2022, here is how to amend.
To amend your return using Turbo Tax Online.
To amend using the Desktop Software, go to:
Once you begin the amendment process, go to:
Once done, all forms should complete along with 1040 X, which is already generated in your return.
You need to amend your 2021-2022 tax returns. If you filed with Turbo Tax in 2021-2022, here is how to amend.
To amend your return using Turbo Tax Online.
To amend using the Desktop Software, go to:
Once you begin the amendment process, go to:
Once done, all forms should complete along with 1040 X, which is already generated in your return.
You need to amend your 2021-2022 tax returns. If you filed with Turbo Tax in 2021-2022, here is how to amend.
To amend your return using Turbo Tax Online.
To amend using the Desktop Software, go to:
Once you begin the amendment process, enter your rental house information here.
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