Investing in an Opportunity Zone fund is by far the easiest, most versatile and cost-effective way to reduce your capital gains tax when you sell your property. And our team at Lifeafar can guide you through the investment process. Dear KUMAR, 1 & 2 – Please browse the article. 3 – You can deposit capital gains (if any) into the capital gains account system offered by a public sector bank. The interest rates paid on these accounts are the same as for regular savings and term deposits. Please note that interest earned on this account is taxable. I sold my apartment in the current fiscal year. I also own another property under construction. Can I save LTCG taxes by investing in another property/apartment? 2) or is it the selling price of the new home – cost price of the new home x tax rate 1.
I bought a 4000 square foot lot for 86 lakes in May 2015. I wanted to build a building that will have 8 units. 2. For construction, I sold my 2 apartments in August 2015. I got the capital gain of 50 lakes on it. As I have 3 years to complete the building, I can claim my capital again. but my CA told me that I could only claim one floor that will cost 50 lakes. I work in the private sector and I like to buy an apartment in the metropolitan city. If he sells this property up to 7L, how much will he be taxable? Can he save tax? or use the total amount to buy the apartment for me.
or is it the right option to transfer ownership of the property and use the fund to buy an apartment for me within a month. Now I`m going to file a tax return in July 2016 and before that, I`ll have to invest my CG in real estate instead of depositing into a capital gains account. The seller in India must pay 20.80% LTCG tax on the share of the profits from the sale. I sold an apartment in March `16. The apartment was assigned to me in December 2007 and I paid regular installments for it. The property was handed over to me on July 6, 2015, when the purchase agreement between me and the builder was concluded. Are the resulting capital gains long-term? If so, should the total cost paid for the acquisition be indexed for the calculation of capital gains? Thank you for sharing your valuable knowledge in this forum. I have a question about the applicability of the capital gains tax in the case of co-ownership with the wife. My wife is a housewife and the apartment is in condominium (her contribution was her parents` gift at the wedding and I paid the balance with a loan).
Can capital gains now be shared between us? If 10,000,000 is the long-term capital gain after indexation, can I post 500,000 as capital gains and 500,000 as my wife`s profits? What is the procedure to obtain the GTC exemption by investing cumulative GTC from the sale of 2 residential properties in a new apartment? Hi sir, I am a housewife and I bought land in Guwahati in 1989 for Rs.10,000. Now I will sell the property in June 2019 and the government sale price for this land is 75,00,000 (seventy-five lakhs). What will be the LTGC and the amount of tax payable? To date, I have no funds for other income and a non-taxpayer after the sale of a property that we think will save capital gain, but here is my request before the sale, if I buy residential land in advance of the party to whom I should sell my residential property next door after six months. Can I still get a capital gains tax exemption for the sale and purchase of a property? please specify. Hi sir, I am Himatkumar Shah De Goa, I was bought a commercial land @ 350000 and stamp duty 25000 during the fiscal year 2009-10 and I also did their business business. After five years FY 2015-16 sale of commercial land of Rs 450000 I was not of this amount of Rs 450000 until the date. So, what was the responsibility of the long-term capital gain in this case, please guide me and propose as well. You will lose the status of principal residence in your principal residence, but it can still be earned later by returning to it after the sale of the rental property. As long as you do not plan to sell the principal house for at least two years, you can restore the principal residence and later qualify for the capital gains exclusion. Dear Ashu, yes, you have to pay taxes on LTCG (if any) and can then give this amount to your wife for the purchase of a property in her name. Please note that the rental income from the new property will be linked to your income.
So you can also think about giving the proceeds of these sales in the form of LOAN to your wife instead of GIFT. Read: Donations and impact on income tax. Hello – thank you for your info! For LTCG, if the tax bracket is less than $75,300, there is no tax. Is the $75,300 before or after winnings are added? I want to sell my farmland, but the farmer gives me the total payments per cheqe. so I am not clear about taxes. Please help me Dear Mr. SASTRY, If you have sold a house and want to save taxes on LTCG, then you can invest in land and then have to build a new house within three years of selling the property. If you want to sell apartment A and proceed with the sale, you want to buy a new apartment (e.B.C) to save LTCG. Thank you for that clarification. I did the sale of House Property 7 months ago.
To claim the tax benefit, I heard that I can open a CGAS account before the tax return, that is, before July 31. It`s true? According to the Internal Revenue Service (IRS), “some or all of the net capital gain may be taxed at 0% if your taxable income is less than $80,000.” So if you have no active income and minimal passive income, including the profit from the sale of your investment property, you can avoid paying taxes on your minimum capital gain. However, if your income is constant and paying taxes on profits seems inevitable, you should consider the IRC Section 1031 exchange. You can use capital losses to offset your capital gains as well as a portion of your regular income. Any amount carried forward subsequently may be carried forward to future years. Dear Bharat, 1 – Under Article 54EC, NRIs may invest in capital gains bonds issued by REC and NHAI to obtain a capital gains exemption. However, investment in these bonds will be frozen for three years. Hello: Thank you for the informative article. However, I have a question. What happens if I develop land and build apartments using a fund or construction loan? How can I pay capital gains if the properties were built and sold within 3 years because the land was held for more than 3 years? How can I divide or divide CGT taxes proportionally? Do I have to pay stamp duty on departure or only the buyer? The country has been in my name and in my family for years. Hi Sreekanth. Thank you for the information.
I have residential land (15 year old land) in one city and I would like to sell it now and immediately buy land in another city and build a house there. Could you tell me if I am entitled to a capital gains tax exemption? Dear Daniel. Is it farmland? The rules of local citizenship (municipality) apply. Hello, I bought the apartment under construction in 2015 and I took possession of it in July 2016. This apartment is rented and now I want to buy a new apartment for my own residence with the help of a home loan, currently I stay in the same city for rent. So I wanted to understand whether entering into an agreement with the purchase of this residential property would be useful in the tax exemption or not. Ladies and gentlemen, I bought a plot of land in 2009-10, and in 2015 a house was built on it, now in the calculation of capital gains.. Are construction costs considered improvement costs? And is indexed? Please help Can she apply for an exemption under 54F of the IT Act, as she did not deposit the amount into the CSI account and spent the money directly on the construction of a new property. The sale of the land took place in 2013 and the house was completed in 2015. .