Taxes on Sale Proceeds from Real Estate
I am a US citizen and I have a residential plot in India that I purchased in the year 1981 with Indian rupees before immigrating to US. I am planning to allow a builder to construct an apartment complex in my plot with an agreement that I will get 40 % of the apartments as my share towards consideration for the value of the plot. I may get 4 apartments as my share and I intend to sell them. The construction may take about 18 months, so I will get payments in the form of advances and final payments from retail buyers at different times during that period of 18 months. What will be the tax implications in India and US? Will it be treated as a long term capital gain?
Thanks,