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....
CAclubindia
