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3w🤝 NRI Life
I own a rental property in Pune that generates about ₹4.5 lakh/year in rental income. My CA in India says I need to declare this on my US tax return too. But then I'm paying tax twice — 30% in India and then again in the US. Is there a way to avoid double taxation? Do I need to f...
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Yes, you must declare worldwide income on your US return (Form 1040). But you get a Foreign Tax Credit (Form 1116) for taxes paid in India, so you're NOT actually double-taxed. The credit offsets your US liability. Re: FBAR — YES, if your Indian bank accounts (including NRE/NRO) exceed $10,000 combined at ANY point during the year, you must file FinCEN 114 (FBAR) by April 15. Separate from your tax return. Also file Form 8938 (FATCA) if assets exceed $50K (single) or $100K (married). Use a CPA who specializes in NRI taxation — regular CPAs miss these forms and the penalties are brutal ($10,000 per unfiled FBAR).
Pro tip: if you haven't been filing FBAR and have Indian accounts, look into the Streamlined Filing Compliance Procedures. It's an IRS program for people who non-willfully failed to file. You file 3 years of back taxes + 6 years of FBARs with no penalties. Much better than waiting for the IRS to find out.
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