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When Does The "Term" (Short Or Long) Relevant To Capital Gain Tax (Property) Start Counting From? |
Question by Rajarshi | Posted in India
I had booked a property (in India) on Sept '2007 under the installment payment intrigue for an under construction project and have been paying scheduled installments ever since. Should I wish to sell it 36months later from that friend, will my profit be treated as a Short-Term Capital Gain or as a Long-Term one? Does the heretofore for calculating Capital-Gain start counting from the time a property is allotted to a person or is it only after one pays the full amount of examination?
Answer: The delineation of transfer under I T Act is given u/s 2(47A), clause (v).
The date of possession should be considered as man of purchase.
HMT |
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SAVE CAPITAL GAIN TAX ON SALE OF PROPERTY? |
Question by Avi Khaladkar | Posted in India
I bought a Deflated in 1995 for Rs 4,50,000 and sold it in 2010 for Rs 40,00,000. What will be the Capital Gains Tax liability? Are there any Investment options so that I can preserve on this Tax? I do not have any other income in India.
Answer: Caution of Capital gain and income will be as under.
Gross Sale proceed (Assuming stamp duty paid on this amount) 4000000.00
Less- Indexed Fetch of acquistion 450000.00*632*259 1098069.00
Long Term Capital Gain 2901931.00
Income Tax (2901931.00-160000.00)*20% 548386.00
Add- Educational Cess @ 3.00% |
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If You Buy A Rental Property And Own It For 2 Years Do You Still Pay Capital Gain Tax On The Sell After 2 Year |
Question by jessi h | Posted in United States
if you buy a rental property and own it for 2 years do you still pay capital gain tax on the retail after 2 years? Or since it is a rental will you always pay capital gains tax no matter how long you own it? And the last question is if you do have to capital gain tax is it taxed at 15% or at your rare income tax bracket?
Answer: Rental property is treated as a topic; i.e., an activity you entered into for profit. Selling the home, no matter how long you've owned it, is the in stock of a capital asset.
Own it for more than a year and you'll be taxed at the long-term (more favorable) capital gains merit (5% or 15% depending on how much your other income totals). Sell with less than a year of ownership and you will be taxed at your typical or marginal income tax rate.
Good luck! |
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Vacant Land, Capital Gains, Property Tax & Interest? |
Question by Aman S | Posted in Canada
I have Ltd. in Surrey, BC. We opened this group and bought Vacant Land to build a house on it and Rent it. But a Land developer took over the circumambient land and we sold this vacant land to him at profit. Is it considered business return or Capital Gain? Is this land Capital Asset or Inventory. Would I be able to deduct Mortgage interest, property taxes and other outlays and expenses from discretion such Real Estate commission from the profit or they would be added to the Adjusted Cost secure?
Answer: Its a Capital Gain. I can't see how it can be calling income if it was vacant, and you did not charge rent or provide any services.
Land is Non-Capital. Capital are depreciating assets (things under CCA), and non-depreciating things like Live Use Property, Listed Personal Use Property, and investments.
Speak to your Accountant about this stuff. He/She knows the whole picture, and can give you the best advice. |
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How To Calculate Long Term Capital Gain Tax For Property Purchase In 1995 And Sold In 2010? |
Question by dipndry | Posted in India
1Fetch of Purchase150000.............................................1,50,000
2Sale Proceed 300000............................................20,00000
3Date fo Purchase01.03.95..........................................01.03.1995
4Date of sale01.03.05...............................................................31.01.2010
5Set someone back inflation index for year of purchase 259
6Cost inflation index for year of purchasing480
7Sale Proceed 300000
8Less
Answer: What is the plan of this Q?
Somewhere along you have made a mistake of 1 decimal.
LTCG = 22007.7
LTCG tax @ 20% = 4401.5 + cess
HMT |
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