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LearnFAQImmigrant & NRI Finance

What are the US tax consequences of selling property in India while I live in the US?

Answer

As a US tax resident, a sale of Indian real estate is a reportable capital gain on your US return, regardless of where the property sits. You'll compute gain in US dollars using exchange rates at purchase and sale, which means currency moves can create gain (or loss) the rupee figures don't show. India will also tax the sale and apply TDS at source, but you can generally claim a foreign tax credit on Form 1116 to avoid double taxation. Long-term Indian property (held over two years) gets indexed treatment in India, but the US uses its own basis rules with no indexing. Repatriating proceeds runs through your NRO account under the $1M annual cap with Forms 15CA/15CB. Keep meticulous records of cost, improvements, and exchange rates. Consider running the bigger picture through wealthserene.com/tools/return-to-india.

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