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JACUSTOMER-b0lr4fay-
JACUSTOMER-b0lr4fay-, Financial Manager
Category: Finance
Satisfied Customers: 1408
Experience:  Tax analyst manager. JD, EA, LLM in Business and Tax
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Only for Rakhi Vasavadha: I am an Indian Citizen residing

Customer Question

Only for Rakhi Vasavadha :
I am an Indian Citizen residing and working in USA on Green Card . I want to clarify the below in regard with home rental income if I purchase some house property in India and rent it out there :
(1) Will I need to show my rental income of India in my US Tax Return because in India 30% of Rental Income is Standard Deduction and if rest is more than Rs.2,50,000 , then only it is taxable ?
(2) How and where in US Tax Return such indian rental income is shown or taxed ?
(3) What are the deductions available here in US Tax Return for such indian house property rental income and can such income be zero after deductions ?
(4) How will the amount of rental income and deductions be shown in USD because these all figures will be in Rupees in India ?
(5) Will I need paper proofs or bills for deduction of all expenses related to repair & maintenance of such house property in India to show in US Tax Return because most labor work in india is paid in cash and no bill or receipt for that like white wash , carpentary , mason , plumber , etc .?
(6) Is there any benefit of earning rental income in India and showing in Indian Tax Return (if more than Rs.2,50,000) and here in US Tax Return too ?
(7) If there is an ancestral house or a house I bought when living in india , do I need to show only its rental income in US Tax Return or at any time will I be required to show how did I buy this house or how did I pay to buy such house i.e., source of income , etc ?
Submitted: 2 months ago.
Category: Finance
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
Hello
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
As a green card holder you must report all worldwide income.
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
If you do pay tax in India, you will get credit for the taxes paid in India.
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
As far as rupples vs dollars, you have to convert all monies to US dollar on US return using an accepted conversion and state what conversion tables are used.
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
The rental income and expenes are reported on schedule E .
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
Form 2555 is used to report taxes paid in India.
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
If you are still a US citizen when you sell the home, you will report the gain from any sell. How you obtained the home, cost, and previous treatment will be needed.
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
your income can be zero after expenses associated with the rental.
Expert:  JACUSTOMER-b0lr4fay- replied 2 months ago.
As for paper proof of expenses. You do not need proof to file your return, but if you were ever audited, you would need proof of any expense taken.
Customer: replied 2 months ago.

Thanks , my question was for Rakhi Vasadhava as i asked her question in past . Can you please open my question for Rakhi ......................

Customer: replied 2 months ago.

Thanks , my question was for Rakhi Vasadhava as i asked her question in past . Can you please open my question for Rakhi ......................

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