Real Estate Bubble In India

bear23

Registered Users (C)
#61
unitednations said:
You guys ever consider tax consequences of buying/selling/investing in foreign lands.

US tax law says you get taxed on worldwide income.

If you have a foreign bank account more then xx dollars you need to report it.

If you own more then 10% of a foreign company; there is a special tax form you need to complete ($10,000 penalty for not filing it).

If you bought property while in USA in foreign land and then leave USA without selling it; there is tax consequences.

USA monitors all outgoing money to foreign lands (patriot act); they know of the money movements.

This stuff has been going on but after a while it will become on the radar of IRS/US Government.

You guys need to take special precautions. You never know when this comes onto IRS radar.
Most of the things you mention are valid for US citizens.

You guys ever consider tax consequences of buying/selling/investing in foreign lands.

It may be foreign land for US citizens, but most people on this site waiting for GC are not US citizens.

US tax law says you get taxed on worldwide income.


I have income in India that has nothing to with the United states. On the other hand if a US citizen has income worldwide and not reporting it, i am not sure of the consequences. Or if i have money in India that was earned in the USA and i am getting interest on it, it is taxable. But only if the money is in a NRE account. ( money is transferable to USA anytime)

If you bought property while in USA in foreign land and then leave USA without selling it; there is tax consequences.
Being on H-1 visa, again it is not foreign land as i am not a US citizen.

USA monitors all outgoing money to foreign lands (patriot act); they know of the money movements.
Yes they do to make sure taxes have been paid for money going out of the USA. Terrorist funding is another concern in which case both money coming in and going out of the USA is monitored.
 

tusharvk

Registered Users (C)
#62
how do you file your taxes in US? I think people on h1 are considered and taxed as US residents. for IRS, person on h1 is as good as US citizen.
some on student visa can file as non-residents.
bear23 said:
Most of the things you mention are valid for US citizens.

You guys ever consider tax consequences of buying/selling/investing in foreign lands.

It may be foreign land for US citizens, but most people on this site waiting for GC are not US citizens.

US tax law says you get taxed on worldwide income.


I have income in India that has nothing to with the United states. On the other hand if a US citizen has income worldwide and not reporting it, i am not sure of the consequences. Or if i have money in India that was earned in the USA and i am getting interest on it, it is taxable. But only if the money is in a NRE account. ( money is transferable to USA anytime)

If you bought property while in USA in foreign land and then leave USA without selling it; there is tax consequences.
Being on H-1 visa, again it is not foreign land as i am not a US citizen.

USA monitors all outgoing money to foreign lands (patriot act); they know of the money movements.
Yes they do to make sure taxes have been paid for money going out of the USA. Terrorist funding is another concern in which case both money coming in and going out of the USA is monitored.
 

bear23

Registered Users (C)
#63
tusharvk said:
how do you file your taxes in US? I think people on h1 are considered and taxed as US residents. for IRS, person on h1 is as good as US citizen.
some on student visa can file as non-residents.
Whoever said you dont have to pay taxes as US citizens.

After you have paid your taxes can you invest that money back in your country or give it to anyone you want?????
 

bear23

Registered Users (C)
#64
tusharvk said:
how do you file your taxes in US? I think people on h1 are considered and taxed as US residents. for IRS, person on h1 is as good as US citizen.
some on student visa can file as non-residents.
You earn money in the USA.You buy a house in india. Say the price is now doubled. You sell the house. Do you put your indian income in the tax form when you file taxes here ????
 

Jackolantern

Registered Users (C)
#66
Nadi said:
If one becomes a naturalized US citizen .. and goes back to India to work.
He gets paid in India in INR. Does he still have to do US taxes ?
Yes, he still has to file US taxes, even though he may not actually have to pay anything to the US. There are exemption amounts for US citizens who live long-term outside the US, and you can usually write off taxes paid to the non-US country where you live against your US tax liability, with the net result often being that you won't pay any US taxes. But you're still supposed to report all your income and then do the subtractions on the relevant tax forms.
 

alexberg

Registered Users (C)
#67
It depends

bear23 said:
You earn money in the USA.You buy a house in india. Say the price is now doubled. You sell the house. Do you put your indian income in the tax form when you file taxes here ????
If you file as a non-resident (use NR form) you do not have to report your foreign income.
 

AAA_USA

Registered Users (C)
#68
Guys,

Keep posting your opinions and messages. I guess so many things new to me regarding tax stuff has come up for discussion which kinda helps everybody.

Please share your thoughts on the real estate in India. Do you think it is a bubble or really a boom.
 

tusharvk

Registered Users (C)
#69
I think you would not be able to file as NR on h1b or GC.
on F1, it is possible to file as NR but only for a certain years.
alexberg said:
If you file as a non-resident (use NR form) you do not have to report your foreign income.
 

GaramChai2go

Registered Users (C)
#70
AAA_USA said:
Guys,

Keep posting your opinions and messages. I guess so many things new to me regarding tax stuff has come up for discussion which kinda helps everybody.

Please share your thoughts on the real estate in India. Do you think it is a bubble or really a boom.
It seems no one is touching the real topic. Everyone is concerned about taxes. Ur efforts are going in vain.
 

tusharvk

Registered Users (C)
#71
it is curious how little people know about the tax ramifications in US & India of being on h1b status.


AAA_USA said:
Guys,

Keep posting your opinions and messages. I guess so many things new to me regarding tax stuff has come up for discussion which kinda helps everybody.

Please share your thoughts on the real estate in India. Do you think it is a bubble or really a boom.
 

mariner555

Registered Users (C)
#72
GaramChai2go said:
It seems no one is touching the real topic. Everyone is concerned about taxes. Ur efforts are going in vain.
its a bubble ..plain and simple. if in pune or some emerging city then I would recommend it. other booming places I wont recommend it (esp if you have no plans of moving there soon).
 

eBhola

Registered Users (C)
#73
alexberg said:
If you file as a non-resident (use NR form) you do not have to report your foreign income.
For tax purposes, an alien is an individual who is not a US citizen. Aliens are classified as non-resident aliens and resident aliens. Resident aliens generally are taxed on their worldwide income, in the same way as US citizens. Non-resident aliens are subject to different tax laws than those that apply to US citizens; for example, many non-resident aliens working temporarily in the US can claim treaty benefits. In general, non-resident aliens are taxed only on their income from sources within the US and on certain income connected with the conduct of a trade or business in the US.

An individual is considered a nonresident alien for any period that he or she is neither a US citizen nor a US resident alien. He or she is considered a resident alien if meeting one of two tests for the calendar year.

The first test is the green card test. If at any time during the calendar year an individual was a lawful permanent resident of the US, according to the immigration laws, and this status has not been rescinded, or administratively or judicially determined to have been abandoned, he or she is considered to have met the green card test.

The second test is the substantial presence test. To meet this test, an individual must have been physically present in the US on at least 31 days during the current year, and 183 days during the 3-year period that includes the current year and the 2 years immediately before. To satisfy the 183 days requirement, an individual must count all of the days he or she was present in the current year, and one-third of the days he or she was present in the first year before the current year, and one-sixth of the days he or she was present in the second year before the current year. An individual need not count any day he or she was present in the US as an exempt individual.

An exempt individual may be anyone in the following categories:

A foreign government-related individual;

A teacher or trainee with a J or Q visa who substantially complies with the requirements of the visa;

A student, with an F, J, M, or Q visa who substantially complies with the requirements of the visa;or

A professional athlete temporarily present to compete in a charitable sports event.
Also, any day where an individual is present in the US because of a medical condition need not be counted.
 

GC_KVA

Registered Users (C)
#74
ThankYou eBhola, for such an excellent analysis.

I personally spoke with my CPA about this and he explained it exactly like you.

Yes, there are some disadvantages with the GC and this is one of them.
 

aquagemini

Registered Users (C)
#75
Pune Property

Any views on Pune real estate?

--------------------------------------------------------------------------------

What do folks think about Pune real estate?
What are the upcoming areas..


In 2002-2003 I went through the process of buying a flat in Pune, took longer than promised for actually getting the keys, though the construction is good and the society was formed quickly. But every one who buys a flat in Pune may not be as lucky, you need some one there to push for your cause. Good thing about it all is that you can continue to pay your bills ( electricity, Nagarpalika etc.) online and keep your property uptodate. There are some online sites discussing various Pune builders (just google),
 

mariner555

Registered Users (C)
#76
This is what I meant in my prev postings ... UN any comments ?

well-known business writer David Heenan. The next global war will be fought over human capital--and America's already losing. Immigrant brainpower has always been vital to the U.S. economy, and never more so than today, when half of the Ph.D.s working here are foreign born. Emerging economies in Iceland to India are taking bold steps to lure their native born back. The best and brightest in America are returning to their homelands in record numbers--and with them is going U.S. technology and economic preeminence.
In Flight Capital, Heenan explores this exodus through the personal stories of dozens of successful, foreign-born professionals who are leaving America for opportunities in their native lands: China, Ireland, Singapore, Taiwan, India, Mexico, Iceland, and Israel. Can anything be done to stop the "reverse brain drain?" Heenan identifies a dozen strong actions that the U.S. can take--rethinking our politics and attitudes in politics, business, and education--to save its position as the world leader in human capital. Compelling and timely, this book is sure to spark debate on where America's future lies in the global economic community
 

GaramChai2go

Registered Users (C)
#77
mariner555 said:
This is what I meant in my prev postings ... UN any comments ?

well-known business writer David Heenan. The next global war will be fought over human capital--and America's already losing. Immigrant brainpower has always been vital to the U.S. economy, and never more so than today, when half of the Ph.D.s working here are foreign born. Emerging economies in Iceland to India are taking bold steps to lure their native born back. The best and brightest in America are returning to their homelands in record numbers--and with them is going U.S. technology and economic preeminence.
In Flight Capital, Heenan explores this exodus through the personal stories of dozens of successful, foreign-born professionals who are leaving America for opportunities in their native lands: China, Ireland, Singapore, Taiwan, India, Mexico, Iceland, and Israel. Can anything be done to stop the "reverse brain drain?" Heenan identifies a dozen strong actions that the U.S. can take--rethinking our politics and attitudes in politics, business, and education--to save its position as the world leader in human capital. Compelling and timely, this book is sure to spark debate on where America's future lies in the global economic community
I have read several of these stories. It always come down to what America should do to save its ... Why don't they ever talk what India/China should do to keep going faster and improve? Nobody talks about them, please help them. Are they really scared, or are they just pretending to be scared? Sorry I am just trying to understand their mentalities.
 

PV4466

Registered Users (C)
#78
India and US have tax treaty to prevent double taxations. I examined this in detail 3 years back - not sure what has changed since then. In general, you will have to pay taxes but not in both the countries (India and USA).

unitednations said:
You guys ever consider tax consequences of buying/selling/investing in foreign lands.

US tax law says you get taxed on worldwide income.

If you have a foreign bank account more then xx dollars you need to report it.

If you own more then 10% of a foreign company; there is a special tax form you need to complete ($10,000 penalty for not filing it).

If you bought property while in USA in foreign land and then leave USA without selling it; there is tax consequences.

USA monitors all outgoing money to foreign lands (patriot act); they know of the money movements.

This stuff has been going on but after a while it will become on the radar of IRS/US Government.

You guys need to take special precautions. You never know when this comes onto IRS radar.
 

GaramChai2go

Registered Users (C)
#79
So what's up AAA? What did you decide about your real estate investment. It is horrifying, the prices. Do you think it is going to come down ever? I know if it stays like that I would never be able to buy anything over there.
 

AAA_USA

Registered Users (C)
#80
Not sure dude. This is related to Hyderabad though. No doubt these are ridculous prices. These prices would probably keep going up till the software money flow into india is on the rise. Probably it might be some more years before the indian IT would saturate.

Or keep looking at second tier cities.
 
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