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I sold inherited property in India and paid capital gains

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tax in India. As per...
I sold inherited property in India and paid capital gains tax in India. As per my accountant I do not owe Fed tac because of foreign tax credit, but I have to pay NY State tax because there is no credit. Is this true?
Submitted: 1 year ago.Category: Tax
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12/1/2015
Tax Professional: emc011075, Tax adviser replied 1 year ago
emc011075
emc011075, Tax adviser
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Satisfied Customers: 3,241
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Hi. My name is ***** ***** I will be happy to help you.

If there are capital gains to be reported (sales proceeds minus the fair market value of the property on day of inheritance) those will be included in your taxable income on your federal and state return. On your federal return you can claim the foreign tax credit for taxes you paid in India so the credit will offset your federal tax liability. However, there's no such credit on NY state tax return. Your accountant is correct. Capital gains will be claimed on both, your federal and state return, but the credit only offset your federal tax liability, but not state.

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Tax Professional: emc011075, Tax adviser replied 1 year ago

I am sorry sorry if that's not the answer you were hoping for. Do you have any questions?

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Tax Professional: emc011075, Tax adviser replied 1 year ago

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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Customer reply replied 1 year ago
You answered my question although it was not the answer I had hoped for.Thanks
Tax Professional: emc011075, Tax adviser replied 1 year ago

I am sorry, I am just the messenger. I wish I could give you more positive answer but I don't make rules. And if you found my answers helpful, a Positive Rating would be greatly appreciated. Thank you.

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