Bought co-owner's 50% share in a property? How capital gains tax applies when selling whole asset
New Delhi, Aug. 12 -- Suppose you have jointly owned residential property with your sibling or with someone else, with each of you holding a 50% share. Later, you buy the co-owner's 50% share and become the sole owner of the property. After that, you sell the entire 100% of the property.
In such a case, calculating capital gains tax is not as simple as it may seem. This is because the two 50% shares were acquired on different dates and at different prices.
Here's what experts have to say about the tax treatment in such a scenario.
Says Vijay Raundal, Director, Teerth Realties, "Owning 50% initially and subsequently purchasing the remaining 50% does not mean the property should be treated as one single capital gain. Since the two intere...
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