QUESTION:
We are buying a property in US. The down payment is to come from India selling a property there. What is the quickest and best way to do this?
Please help us figure this out.
Thanks
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david ingram replies:
If you have just become US residents and are buying a house to live in, there is problem. Just have the bank in India send the money to your bank in the US.
If you have been US residents for some time, you have to take capital gains tax into account.
Any profit you have realized on the India property is subject to US capital gains tax.
Claim any tax paid to India as a credit on US form 1116.
If the property in India was rented, any rents should have been reported each year on US form Schedule E.
And any India Bank or other financial accounts you have should have been reported on form 'T D F 90-22.1' if the total of all your accounts exceeds $10,000 US (it will for the sale for sure). See the bottom two questions on US form Schedule B.
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