Contents
- 1 Indian Americans with Overseas Assets & Income in India
- 2 Who is a US Person
- 3 US Worldwide Income Tax & Reporting
- 4 Foreign Tax Credits
- 5 Form 8938 Foreign Assets
- 6 Form 8621 for Passive Income
- 7 FBAR Foreign Bank & Financial Accounts
- 8 Common Indian Investments Subject to U.S. Tax & Reporting
- 9 Fixed Deposits
- 10 U.S. Taxation of India Provident Funds
- 11 Stock Certificates/Demat
- 12 Mutual Funds
- 13 Bank Interest
- 14 Dividends
- 15 Capital Gains
- 16 Rental Income in India
- 17 Interest Earned on Future Property Development
- 18 Retirement Contributions
- 19 India Asset and Income Tax Tips (and Misconceptions):
- 20 Foreign Tax Credit
- 21 Foreign Tax Credit Refund
- 22 Income/Gifts
- 23 EPF
- 24 FATCA
- 25 FBAR
- 26 Foreign Earned Income Exclusion
- 27 Transferring Account Ownership
- 28 Calling the IRS Before Getting Into Compliance (Place Holder)
- 29 Be Cautions of Inexperienced Counsel
- 30 Late Filing Penalties May be Reduced or Avoided
- 31 Current Year vs Prior Year Non-Compliance
- 32 Avoid False Offshore Disclosure Submissions (Willful vs Non-Willful)
- 33 Need Help Finding an Experienced Offshore Tax Attorney?
- 34 Golding & Golding: About Our International Tax Law Firm
Indian Americans with Overseas Assets & Income in India
Each year, Taxpayers from India who are considered US Persons and have assets and/or income in India — and possibly other foreign countries as well — have a complicated IRS tax labyrinth to work through in order to successfully report their foreign income, accounts, assets, and investments to the US Government. While it may benefit a Taxpayer to prepare and implement pre-tax planning strategies to avoid reporting issues before they arise — tax traps can (and will) still appear — even after planning strategies have been utilized. Whether it is reporting for FATCA (Foreign Account Tax Compliance Act), FBAR (Foreign Bank and Financial Account Reporting aka FinCEN Form 114), and/or passive income issues involving tax and reporting on Form 8621, rental property income, or other investments — international tax compliance is an important aspect of every US tax return for US Persons from India who still have money earned or invested abroad. Let’s go through some of the basics of the India and US passive income tax rules; how to plan for US Tax Compliance — and how to stay in reporting compliance or get into compliance if reporting was missed.Who is a US Person
A US person individual generally includes the following categories: U.S. Citizens, Lawful Permanent Residents, and Foreign National non-permanent residents who meet the Substantial Presence Test. It does not matter that a Taxpayer is a citizen of another country. Common examples of US Persons include:-
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Dual-Citizens
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Lawful Permanent Residents
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Work Visas: H-1B; L-1, and O
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Travel Visas: B1/B2
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Investment Visas: E-2/EB-5
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Student Visas Post-5 Years: F-1
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