Taxes implications for selling jointly owned home

Professor

Exemption can be claimed u/s 54 by that assessee who invests in new house either within 1 yr or before the due date of filing of ROI.

Rates of tax is flat 20%. But basic exemption can be claimed if other income is less than basic exemption.

Stamp duty is paid by the buyer.

One thing how many property does your mother own. 1/3rd she is selling and which property she will gift?

thanks

&

be tax genious

I had written a long answer. But net connection gone. now I have written in short. I hope it is ok for u

Thank you, Kaushal. This is most helpful.

My mother owns just a 1/3rd of the family house.  She does not own any other land or property other than the family house in which she currently resides.

Her wish is to gift her portion of the family house to us. My question was whether we would be better off from tax point of view for her to sell her (one-third) portion along with us and then gift us the money; or whether she should gift us her portion of the house first which we will then sell.

The idea is for her to move into the flat that we would have purchased for her by then.

Thanks again for your help.

Originally posted by : TaxConfused
	My mother, sister, and I each have one-third ownership of our house. We would like to sell the house *after* buying a flat for my mother. The flat will be jointly owned by my sister and me (that is, our mother will not be a registered owner). Furthermore, my mother wants to gift her portion of the family house to the 2 daughers. My questions are as follows: 1.  As a seller, would we be having to pay Stamp Duty? 2  Would our tax liability be less if (a) Ma were to sell first and then gift us her portion of the sale value. Or, (b) if she were to gift us her portion of the immovable property first, which we then go on to sell 3. I realise we will be liable for Capital Gains tax (at 20%) on the sale of our property. Would it be less under 2a or 2b scenarios listed above? 4. Can any tax benefits be obtained retrospectively on account of us buying the apartment before the sale? 5. Finally, I am told that CG exemption might be obtained for portion of residential property being sold... if so, can we avail of any such exemption? Many thanks in advance!! Sorry to ply you with so many queries....

after the sale of the house, if the net LTCG is invested in new flat, ( not a matter that its in two names in place of three) then whole the LYCG would get tax free, if any residue is left after buing the new property, then it would be taxable @ 20%

use the LTCG portion outgo from all three files for new property by cheque transaction. and if still something is left from LTCG then it would go taxable @ 20% after the threshold limit deduction in individual hand. 

regarding gifting of her share, her indexed cost value is still in her hand, and in balance two co-owners also,l so appropriate these amounts for gift purpose.

Originally posted by : U S Sharma
	Originally posted by : TaxConfused My mother, sister, and I each have one-third ownership of our house. We would like to sell the house *after* buying a flat for my mother. The flat will be jointly owned by my sister and me (that is, our mother will not be a registered owner). Furthermore, my mother wants to gift her portion of the family house to the 2 daughers. My questions are as follows: 1.  As a seller, would we be having to pay Stamp Duty? 2  Would our tax liability be less if (a) Ma were to sell first and then gift us her portion of the sale value. Or, (b) if she were to gift us her portion of the immovable property first, which we then go on to sell 3. I realise we will be liable for Capital Gains tax (at 20%) on the sale of our property. Would it be less under 2a or 2b scenarios listed above? 4. Can any tax benefits be obtained retrospectively on account of us buying the apartment before the sale? 5. Finally, I am told that CG exemption might be obtained for portion of residential property being sold... if so, can we avail of any such exemption? Many thanks in advance!! Sorry to ply you with so many queries.... after the sale of the house, if the net LTCG is invested in new flat, ( not a matter that its in two names in place of three) then whole the LYCG would get tax free, if any residue is left after buing the new property, then it would be taxable @ 20% use the LTCG portion outgo from all three files for new property by cheque transaction. and if still something is left from LTCG then it would go taxable @ 20% after the threshold limit deduction in individual hand.  regarding gifting of her share, her indexed cost value is still in her hand, and in balance two co-owners also,l so appropriate these amounts for gift purpose.

AGREED.

Professor

Let the mother sell the property. She can also claim basic exemption from LTCG. In this way tax will get reduced.

Thanks

We purchased our first house with no contingency. We close in 1 week and have all financial, insurance and other pertinent documents signed and done. Everything is accepted. I read that awaiting release means that they don't think the deal will be done? Any idea what this is all about?

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