Gift from and sale of real estate in India - two questions

[gvemuganti1]

1. My mother sold some real estate in India in 2021 and gifted me a third of the proceeds but these proceeds are in Indian currency  (rupees) in a bank account I have in India. Do I need to report that income when I file my 2021 returns?

2. I was a 1/3 owner of a store in a mall that we sold also in 2021. I got a third of the proceeds but was paid in Indian currency (rupees). Does this need to be reported as income when I file my 2021 taxes?

[ThomasM125]

The gift is not reportable on your income tax return since gifts are not taxable to the recipient. You may need to complete form 3520 to report the gift, however. Here is a link to the form 3520 instructions:

Reporting foreign gifts

You do need to report the income from your interest in the store. This would be the sale of an investment. You need to convert the sale proceeds into dollars and report the investment sale on your tax return.

Follow these steps to enter your investment sales in TurboTax:

While in the Federal section of TurboTax:

  1. Income and Expenses

  2. Investment Income

  3. Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)

Choose the category of investment you want to enter and follow the instructions to enter your investment sale.

[gvemuganti1]

Hello ThomasM125,

Thanks you for replying. I have the sale deed showing me as one of the owners. Should I be attaching this to the tax return? If not, what documentation do I need to attach when I report this income?

[ThomasM125]

You don't need to attach any documentation to the tax return. Just retain it with a copy of your tax return in case you ever get audited, as support for your entries.