Real Estate India: Is my Rental Income upto $80K from my property in India free from US Taxation? What kind of forms I need to file in that case?

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Question asked by Mr Rizvi from New York, USA:

Please can you help me with the following,

I have a rental property in India and I have been told that US TAx Laws allow me to deduct my foreign income upto some $80,000 per year. Can you tell me what form I need to use and if I need to do something on the Indian end?

An experienced and Practising CPA from USA - Mr. Udai B Singh Answers:

Answer from a Practising CPA in USA (Mr. Udai B Singh):

Law is this>>>

Foreign earned income upto $86k (or so) is tax free provided the person lived in foreign country and earned his livelihood while working there for at least 330 days. Refer Form 2555 for more details. Rest all income is taxed. Also, if the person does not qualify based on number of days presence in foreign country, income is again taxed in full, however, taxes paid on that income in foreign country could be claimed on US taxes on Form 1116. Thanks.

Regards,
UB

http://www.atoneplace.com

For more information, kindly visit at Real Estate India or Online Real Estate Video.

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