How to calculate Capital gains in Income tax and how long capital gain exemption can be claimed?

Question

Residential House Property

Answer 1

Following will be good only if you are from India

Long Term Capital Gain can be calculated by deducting the cost of acquisition / purchase and cost of improvement (incurred on the house) from the amount you are receiving from the sale of the resoidential house property

You shall also deduct the brokerage and stamp duty from the sale consideration
Long Term Capital Gain arise if you have kept ur house for more than 36 months.
LTCG is charged @ 20% flat
You can save tax by investing the same in a new Residential Property.
You only need to invest the LTCG in new house and not the entire sale proceeds


For more tax queries contact me at agarwalapurav@ yahoo.co.in

Answer 2

Not exactly sure of your question but here goes.

1. Long term capital gains are typically taxed at a flat rate of 15%.
2. Short term capital gains are taxed at your ordinary income tax rate. Short term is anything held less than 12 months.
3. Not sure what you mean by exemption. I assume you are referring to the Section 121 exclusion on the sale of a personal residence. To obtain the full benefit of the exclusion, a single taxpayer can shelter $250,000 of capital gains on the sale of the primary residence as long as they maintained it as the primary residence for 2 out of the past 5 years. The exclusion is $500,000 for married taxpayers.

I suggest you consult with your tax advisor before selling your primary residence to understand all the specific facts in your case.

[e-mail] - CPA

Answer 3

Try bloomberg.com click on investment tools
they have calculators for most everything