Transfer of Property - Gift Tax Implications - Indian Real Estate Forum

nri12362 · 02-01-12

I am U.S. citizen with OCI. I have property in India that I wish to transfer to a Public Charitable Trust, registered in India (which has a 12A exemption under Indian IT Act). Will there be a gift tax implication under U.S. tax laws, for me (since this trust would not be a recognized charitable trust under U.S. laws).

houstonvijai · 26-01-12

As a CFP Candidate with reasonable knowledge in taxes, I don't see a problem unless you reported or took advantages of mortgage payments made for India property in US tax returns. If you haven't shown any document to IRS about foreign property, they are not going to go after you. Also you have gift tax exemption which I think $3M for lifetime but might have changed which shouldn't put in your gift taxes even though you are gifting to Public trust.

Hope this helps.

02-01-12	#1
nri12362 New Member Join Date: Jan 2012 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	Transfer of Property - Gift Tax Implications I am U.S. citizen with OCI. I have property in India that I wish to transfer to a Public Charitable Trust, registered in India (which has a 12A exemption under Indian IT Act). Will there be a gift tax implication under U.S. tax laws, for me (since this trust would not be a recognized charitable trust under U.S. laws).

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26-01-12	#2
houstonvijai New Member Join Date: Jan 2012 Location: Houston, USA Posts: 6 Thanks: 1 Thanked 2 Times in 2 Posts	As a CFP Candidate with reasonable knowledge in taxes, I don't see a problem unless you reported or took advantages of mortgage payments made for India property in US tax returns. If you haven't shown any document to IRS about foreign property, they are not going to go after you. Also you have gift tax exemption which I think $3M for lifetime but might have changed which shouldn't put in your gift taxes even though you are gifting to Public trust. Hope this helps.