Tax on Long Term Capital Gains made abroad

[ramanathan1720]

I sold shares in Indian Companies bought before becoming a resident of US.  I presume that I will get a free allowance of $47000 of LTCG for 2024.  On the balance of long term capital gains of say $20000, the tax payable is about $3000.  If I pay long term capital gain tax of $4500 in India can I get tax credit for that amount and set off the entire capital gains tax in the USA and show the LTCG tax as zero? 

Do I have to record all transactions in 8949 and submit with Schedule D?

[NCperson]

@ramanathan1720 if you are a US citizen or Resident Alien, you are required to report ALL your WORLD WIDE income on your tax return.  

Why are you assuming $47k is not subject to US income tax? 

[pk]

@ramanathan1720 , agreeing with my colleague @NCperson  , and just adding my two cents:

(a) AS a US person ( citizen / GreenCard / Resident for Tax purposes ), you have to report / recognize   AND be taxed on your world income.

(b) Assets that you acquired prior to becoming a US person remain your asset with the same basis  during your US person stage.  The basis is generally is your acquisition cost ( i.e.. price + any associated costs for Acquistion  )   Note that  US does not index basis ( as practiced in India  for some types of asset ).

(c)  AS you are aware your Capital Gain taxation is based on your Modified AGI and no necessarily  at 0% 

(d)  Depending on your exact situation and the amount of Foreign Taxes you pay to India and under the "double Taxation " clause of the treaty, you can  choose to claim foreign tax credit ( limited  by form 1116 ) or take deduction  ( under SALT limitation ) if you itemize.

Give the above , is there more one of us can do for you ?

Namaste ji 

pk