LCTG on new house built before sale of old one...

Dear Pankaj:

Thank you for your time.

I live in my own house built on a plot registered in the names of my parents and myself. We took possession of this house in April 1998.

I am now thinking of buying another plot and constructing a house on it, with the intention to move to the new house by Dec 31, 2013.

I do not want to sell my current residence before Dec 31, 2015 because I want to have the option of moving back from the new house if it does not suit my aged parents.

My question is: If I buy the plot and build a new house first, and then sell my old house how should I plan to minimize LTCG.

Will I get three years from the date I take possession of the new house to sell my current house and avoid LTCG?

What are the critical dates I should keep in mind?

Thanks again, and I hope my query falls within the purview of your forum.

Raghu

asked Jul 16 '12 at 06:17 by Newbie 11


In order to get tax benefit u/s 54, Construction of new property must be completed within three years after the date of selling house property. If construction completes before sale, deduction won't be allowed.

answered Jul 18 '12 at 10:50 by Pankaj Batra 5.2k320

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Asked: Jul 16 '12 at 06:17

Seen: 1,543 times

Last updated: Jul 18 '12 at 10:50