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-   -   Short term capital gain (https://www.askmehelpdesk.com/showthread.php?t=212661)

  • May 5, 2008, 03:14 AM
    Nizams1
    Short term capital gain
    Hi,

    I've purchased a house i.e my agreement date is 17th April 2007. Now I've sold the property after one year.

    My question is what is the tax that will be deducted from the transaction for the following amount.

    Purchase amount: 1955200+110000(Stamp duty & registration)
    Sale amount:3250000

    Please note: I'm going to invest it again in the property. The property is in india & I'm resident indian.
  • May 5, 2008, 04:36 AM
    MukatA
    1. First you have the India tax implication. Contact an India tax professional.

    2. If you are a U.S. citizen or a resident, then you also have the U.S. tax implication. In the U.S. this sale will be reported on schedule D (Form 1040) and it will be long term capital gain. In the U.S. you can claim credit for the taxes paid in India.
    Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

    If India allows you to invest this money in property and you don't pay tax, then you will not get any credit.
  • May 5, 2008, 09:20 AM
    AtlantaTaxExpert
    MukatA's advice is accurate IF the property is NOT your primary residence.

    If it IS your primary residence and you meet the criteria, the profit on the sale MAY be exempt from U.S. taxes.
  • May 5, 2008, 10:50 AM
    MukatA
    Even it is your main home or second home, you can not exclude the profit as you don't meet 2-years ownership and use tests.
    Read: Your U.S. Tax Return: Profit From the Sale of Your Home

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