Foreign Real Estate Land sale and tax This is a question concerning a US Citizen originally from India. The person had some real estate land in their name even before coming to USA . This land got acquired by Indian govt recently. The Indian govt is expected to pay some money after taking 10% tax on the sale value. The distributed money will be in rupees and will be deposited in some Indian bank account but will not be transferred to USA. This amount will be reported in the IRS tax filing as the amount will be more than $10,000. Does the person also need to pay tax in USA ? Since the person paid Indian Local Taxes, is their still tax on it from IRS? If the person's tax rate in USA is say 18% what is the tax amount if at all IRS demands ? Appreciate your response. |