Tax Questions on Property in Chennai

[srij]

Hello all,

I came across this forum from a google search and I have a question I hope you can help me with.

I am an American citizen and my wife is an Indian citizen who is a permanent resident.

We were married in the US and Chennai in 2007.

We just got back from our 2nd trip to Chennai where we received a gift of 5 grounds of land in Panayur.

We plan to build us a house and then rent out the property and put the rental income into an NRO account over there.

We plan to keep the property for quite some time, but I'm curious as to the tax obligations for both India and the US for when we decide to sell. This property is currently worth quite a bit of money and who knows what it'll be in 10-20 years but will we have to pay taxes to both governments?

Any assistance would be appreciated.

Thanks.

-Kostas


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