Should I take USA based company transfer offer?

[mlal]

I am new to this forum. A friend of mine told I can get good advice on my situation in this forum.I went to USA for MS Computer Science in 1986. I started working in 1988. I got GC in 1993. I married in 1995. Unfortunately my wife had to look after my father-in-law(health issues). She stayed back in India.

There is a provision in US Income tax by which a non resident spouse cam choose to be treated as resident and file 1040 as married filing jointly if married to a GC holder. My wife choose that provision as she was non resident and I was GC holder.

A friend of mine told me to invest some savings in mutual funds in USA and I started to invest in MFs (Fidelity Magellan) in 1992.In 1998 I decided to come back to India. I sold my Magellan units and also moved all my savings to India. My Magellan investment has given good returns and I bought a good flat and put rest of my US earned money in MFs in India.

I abandoned my GC in 2003 by filing I407. Also when filing final US return in 2003 my wife revoked the choice of non resident spouse to be treated as resident. We planned to settle in India for good.

I have two son in std 11 and 8. Both are reasonably good in academics.Currently I am in a senior mgmt role making about 80 lakhs. I have got an intra company offer of 250000 USD +bonus in a very good role.The offer is good both in terms of compensation and hierarchy.

I discussed this with my CA who told me if I go to USA now I have to sell my mutual fund holdings as the Indian MFs are not allowing US residents to invest in Indian MFs. He told me moving to USA now by selling MFs is financially a bad idea.

Now my MF investments has grown manifold over the years and roughly it is worth more than 20 crores. I really feel indebted to my US friend who told about Peter Lynch and Magellan and set me in investment in MFs.

I dont want to exit from my MF investment. I am sure it will grow very well in the future.Also I have properties in India. So even if I go to US it will be only for max 5 yrs.

So my question is should I give up the US offer? Actually my wife could not see much of USA as she had to stay back. So she could have seen and enjoyed USA.

But my wife says she is not wiling to sell the MF investments as it can grow manifold(she is financially very savy) and it is better to go on US in tourism or business visa rather than take this offer and go to USA on L1.

Can any one shed some light about what will be best thing to do?

Also another question is As I mentioned above my wife a non resident choose to be treated as resident and file joint return as was married to me a GC holder in 1995. Also when filing my final resident 1040 return in 2003 my wife revoked the choice of non resident spouse to be treated as resident. Unfortunately after revocation this cannot be reversed.I am not confused if both me and my wife and our kids spend more than 183 days in US and IRS US resident requirement is fulfilled can we file joint US return (does my wife s revocation of choice of non resident spouse to be treated as resident also nullifies joint filing if both of us are US residents??).As you can realise if because of that revocation I have to file as married filing separately we will take huge tax hit.

Thanks for reading this long post.

[okonomi]

I am new to this forum. A friend of mine told I can get good advice on my situation in this forum.I went to USA for MS Computer Science in 1986. I started working in 1988. I got GC in 1993. I married in 1995. Unfortunately my wife had to look after my father-in-law(health issues). She stayed back in India.

There is a provision in US Income tax by which a non resident spouse cam choose to be treated as resident and file 1040 as married filing jointly if married to a GC holder. My wife choose that provision as she was non resident and I was GC holder.

A friend of mine told me to invest some savings in mutual funds in USA and I started to invest in MFs (Fidelity Magellan) in 1992.In 1998 I decided to come back to India. I sold my Magellan units and also moved all my savings to India. My Magellan investment has given good returns and I bought a good flat and put rest of my US earned money in MFs in India.

I abandoned my GC in 2003 by filing I407. Also when filing final US return in 2003 my wife revoked the choice of non resident spouse to be treated as resident. We planned to settle in India for good.

I have two son in std 11 and 8. Both are reasonably good in academics.Currently I am in a senior mgmt role making about 80 lakhs. I have got an intra company offer of 250000 USD +bonus in a very good role.The offer is good both in terms of compensation and hierarchy.

I discussed this with my CA who told me if I go to USA now I have to sell my mutual fund holdings as the Indian MFs are not allowing US residents to invest in Indian MFs. He told me moving to USA now by selling MFs is financially a bad idea.

Now my MF investments has grown manifold over the years and roughly it is worth more than 20 crores. I really feel indebted to my US friend who told about Peter Lynch and Magellan and set me in investment in MFs.

I dont want to exit from my MF investment. I am sure it will grow very well in the future.Also I have properties in India. So even if I go to US it will be only for max 5 yrs.

So my question is should I give up the US offer? Actually my wife could not see much of USA as she had to stay back. So she could have seen and enjoyed USA.

But my wife says she is not wiling to sell the MF investments as it can grow manifold(she is financially very savy) and it is better to go on US in tourism or business visa rather than take this offer and go to USA on L1.

Can any one shed some light about what will be best thing to do?

Also another question is As I mentioned above my wife a non resident choose to be treated as resident and file joint return as was married to me a GC holder in 1995. Also when filing my final resident 1040 return in 2003 my wife revoked the choice of non resident spouse to be treated as resident. Unfortunately after revocation this cannot be reversed.I am not confused if both me and my wife and our kids spend more than 183 days in US and IRS US resident requirement is fulfilled can we file joint US return (does my wife s revocation of choice of non resident spouse to be treated as resident also nullifies joint filing if both of us are US residents??).As you can realise if because of that revocation I have to file as married filing separately we will take huge tax hit.

Thanks for reading this long post.

Sell the india MF, pay india taxes on the gains, and go to the USA.
You will be arriving at the right time.

We have a plan to make America Great Again.

Make gobs of money, do not let taxation related issues guide you as to how much money you can make.
Just make the money. 250K US$ is no chopped liver. You can give up your daily vada-pav, or idly-vada-sambahr for that kind of dough. Buy your wife some genuine Mikimoto pearls, and some Indonesian corals in a necklace. She can wear it as both a resident and a non-resident.

[dbs]

You have a solid financial base.

My advice is to take up this offer and go to usa. 250K is not to be sneezed at.

As for MF, I really don't know but it may not be necessary to sell it. usa does not prohibit but makes it unnecessarily complicated to hold MF in India. You may end up paying more tax but then you will be enjoying the comforts of usa.

You will need some expert advice. Selling MF is not a bad advice if there are more avenues of investment. Of course, your wife can assess whether she can get similar returns by investing in equities in similar ratio as MFs. A large part of investment info of Mfs is available on line. By rebalancing your portfolio every 3 o 6 months, you may still be able to reach the same level of appreciation.

And you could invest again in Fidelity Magellan.

It is not an easy decision but analyse how much you (or your wife) are prepared to pay for the experience of living in usa.
______________________________________________________________
When I'm finally holding all the cards, why does everyone want to play chess?

[mlal]

Mr dbs,

Thank you sir. Actually my wife has solid logic.

My investment in Indian MFs over the years have grown more than 12 times roughly.

Now if I would have been in US and continued with Magellan it would
have grown probably 2.5 times and factoring rs depreciation it would
be less than 4 times.

So my wife (same conclusion as my CA) thinks financially it makes no sense
to liquidate our MFs in India.

My wife thinks best option is to continue in India. She feel in next 15 years
our MF investment will touch 100 cr. Our sons can use this to
go for some start up or some business.

She is telling me we can tour US as much as we want by just spending
1-2 cr so why give up so much wealth?

What can I say to that logic. But I just feel sad that see had to stay back in
India and could not see USA. Actually I am really indebted to my wife as
she really took care of her parents and my parents and my sons and also
managed our MF investment really well. I feel really lucky I got the perfect
life partner who helped me in every possible way.

[dbs]

.....She is telling me we can tour US as much as we want by just spending
1-2 cr so why give up so much wealth?......

She has logic on her side. I fully agree that spending 1 cr you can comfortably travel around usa, sightseeing a month every year.

I have the option of staying in UK, have a son there (at the moment I am visiting him). My other son is in usa and has previously pestered me to get the green card but I had declined.

DW and I are very happy living in India and travel every year to visit our kids.

There is no reason to live abroad if you are happy in India and prefer it.
_______________________________________
Don't change horses........until they stop running

[techynt]

Past was great but future is unpredictable. I disagree with your wife's prediction about Indian markets....to me everything in the worldwide financial markets are very unpredictable and uncertain at the moment, nobody knows the future.

My advice is, you have enough wealth that you can stop calculating about very efficient tax planning, i.e. few $100k here and there is not going to hurt you anymore.

There is the concept, when you are in a bind, think what your heart wants if money is not a factor....and then go for it.....life is very short.....do what makes you and your family happy.....that is the only thing that counts...

BTW, will your wife be happy just being a house wife in USA, she must have a great number of family and friends in India?

Frankly, pardon my quick jump to conclusion, but seems like you have conquered India and now you want to go and conquer USA (career wise) but your wife may not be that thrilled since she may not have any semblance of life over there.....while you are climbing the heights in the board room..


Sit down with her and ask her how does she plan to live life if you go to USA that may give you a better idea about how she feels about this decision...


Sorry again, since I took the liberty of assuming that your wife will be not working in USA.

Mr dbs,

Thank you sir. Actually my wife has solid logic.

My investment in Indian MFs over the years have grown more than 12 times roughly.

Now if I would have been in US and continued with Magellan it would
have grown probably 2.5 times and factoring rs depreciation it would
be less than 4 times.

So my wife (same conclusion as my CA) thinks financially it makes no sense
to liquidate our MFs in India.

My wife thinks best option is to continue in India. She feel in next 15 years
our MF investment will touch 100 cr. Our sons can use this to
go for some start up or some business.

She is telling me we can tour US as much as we want by just spending
1-2 cr so why give up so much wealth?

What can I say to that logic. But I just feel sad that see had to stay back in
India and could not see USA. Actually I am really indebted to my wife as
she really took care of her parents and my parents and my sons and also
managed our MF investment really well. I feel really lucky I got the perfect
life partner who helped me in every possible way.

[mlal]

Mr dbs,


Thanks good observation and very insightful reply.


Mr technyt,


Very informative reply thanks a lot. Actually my wife also manage our
direct investment in equity. she has grown around 40 lakhs to about
11 crore now. This is other than our MF investment.


One reason she doesnt want to go to US is she cant directly invest
in equity from US since market hours in India will be very late night in US.


You have very valid point in unpredictable nature of the market. But
my wife has been able to grow about 1.5 cr (actual investment) to 20 cr
in MF and about 40 lakh to 11 cr in direct equity over the years. So
I trust her with her optimism about Indian equity market. Frankly
speaking my wife is housewife but most of my wealth is thanks to
her expertise in investments.


Yes my growth prospects are good. But as you will clearly realize if my
wife is able to grow our wealth like she did in the past it will be way more
than what I will get extra in US.

[justdoit2552]

Sell the india MF, pay india taxes on the gains, and go to the USA.

I assume OPs investments are long term(more than 365 days), long term capital gains tax are nil in India more http://zerodha.com/varsity/chapter/taxation-for-investors/

[Chakraan]

What will you do with so much money ? I am sure you will die rich :)

Liquidating MF does not mean you are losing that money. Put them in NRE FD with 8% interest rate which is not bad.

The money in MF is not your money until you sell them.

Option 1. You come alone to USA on L1 visa, let your wife continue in India and transfer all your MFs to her name.You file Tax as single in USA. Earn money in USA for 5 years then go back. More money to you.

Option 2. IF you come to USA at this stage with family, it is very unlikely you will return 2 India. In that case, your Indian money will not be utilized unless you bring them back to USD.

Option 3. Continue in India and retire soon and enjoy life. (I would have done this if I had that kind of money)

Now give me 1 crore for this advice. :))

[techynt]

What will you do with so much money ? I am sure you will die rich :)

Liquidating MF does not mean you are losing that money. Put them in NRE FD with 8% interest rate which is not bad.

The money in MF is not your money until you sell them.

Option 1. You come alone to USA on L1 visa, let your wife continue in India and transfer all your MFs to her name.You file Tax as single in USA. Earn money in USA for 5 years then go back. More money to you.

Option 2. IF you come to USA at this stage with family, it is very unlikely you will return 2 India. In that case, your Indian money will not be utilized unless you bring them back to USD.

Option 3. Continue in India and retire soon and enjoy life. (I would have done this if I had that kind of money)

Now give me 1 crore for this advice. :))

We don't have to retire in 40s just because we have lot of money. Only reason to retire early is if we are in boring/stressful job.