Joint ownership vs individual ownership for real estate in India

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vikasintl

New Member
I am US citizen and my other has recently became US resident in December 2013 and we are planning to buy a small apartment in Ahmadabad India for investment purpose and than going to rent it out ...

Should I get an OCI card(I have not applied for it yet) and buy it in my name only (as I believe unless I have an OCI status or PIO status I cant buy in my name please correct me if am wrong..) or I should buy it in joint with my mother?

OR should my mother buy in only in her name?
I am living in USA but my mother is living in India and she has no plan to come back to India any time soon.

if we decide to buy in joint name..what will happen to rent income we will get?
will it split half half between us for tax purposes and report accordingly?

And same question if we buy it in single name either her or mine...what will happen to India and as well US taxes?
 
OCI card is not necessary, you are considered Person of Indian Origin with or without OCI or PIO card. But to make your life easier in India you should get OCI or PIO card.

Any rental income will have to be reported to IRS. If you are the only owner, you report the full rental income. If you are a joint owner you need to report only half. If your mother is the only owner then you don't need to report it to IRS.
 
nkm-oct23 said:
OCI card is not necessary, you are considered Person of Indian Origin with or without OCI or PIO card. But to make your life easier in India you should get OCI or PIO card.

Any rental income will have to be reported to IRS. If you are the only owner, you report the full rental income. If you are a joint owner you need to report only half. If your mother is the only owner then you don't need to report it to IRS.
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Thanks but one clarification...you said if my mother is the only owner than I dont need to report it to IRS....I think we need to report that rental income even if my mother is the only owner because she is also US resident now as of now....but may be we can avoid that because even including rental income her total worldwide income would be less than 10k hence she won't need to file US income tax return but only Indian income tax return Correct?
 
It is not clear from your post that your mother is a US resident. If she is a US resident, she has to report it to IRS if her worldwide income is above the IRS threshold for reporting. She does not have to file an Indian tax return since she is not an Indian resident.
 
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