One flat was sold in FY96-97 and the other one was sold in FY97-98. The assessee computed the long-term gains for the two flats as for one property and invested a substantial amount of the capital gains from the two sales in construction of a residential property. The balance gains was offered as tax.
What are the gains from selling two houses?
The assessee computed the long-term gains for the two flats as for one property and invested a substantial amount of the capital gains from the two sales in construction of a residential property. The balance gains was offered as tax.
Can a assessee sell more than one property?
Even if the assessee sells more than one residential property in the same year and the capital gains are invested in a new property, claim for exemption cannot be denied if other conditions under the section were fulfiled Talk to Advocate Ajay Sethi NOW!
Can a real estate agent help you buy a second home?
Sitting down with an experienced local real estate agent can help you outline your needs and narrow down your options for a second home. They’ll be able to find you a home that fulfills all of your wishes and can even save you money.
Can a person sell more than one house?
However, there is no restriction that capital gains from sale of more than one house cannot be invested in one new house. As long as the capital gains from sale of one house is invested in a new house in each case individually, the exemption should be available.
Do you have to pay capital gains on sale of house?
Exemption from long-term capital gains tax from sale of a residential property is available under Section 54 provided the gains are invested within a specified time in another property.
What happens if you live in home 2 out of 5 years?
If you lived in a property 2 out of the past 5 years, you got to take either $250,000 of capital gains tax free (single) or $500,000 of capital gains tax free (married, filing jointly). Quietly, the IRS has been changing the rules.
Can a second flat be taxed as a house?
The AO, therefore, held that since the second flat had been used for the purpose of business, income from it was not chargeable as one from house property and the exemption under Section 54 was not available on it. The assessee disputed the decision of the AO and appealed before the Commissioner of Income-tax (Appeals) or CIT (A).
Are there two flats in the same building?
The flats were located in two different buildings, in two different housing societies, on two different roads and bought in two different years. There was no common approach road to the buildings. Therefore, the two flats could not be treated as one property.
