Investing sale proceeds of residential flat in buying a commercial shop?
543390
No, Only investment in residential flat and not any shop  is allowed for the purpose of exemption from Capital Gains u/s54 of the I T Act.\n   Please consider , and this is also related to our earlier question regarding the best option for you to save taxes . following option\n\n   1. Invest in some residential flat with a view to sell it after three years. You will get exemption from Capital Gains, you will get Indexation benefits when you will compute the capital gains on the flat sale and mind you the  most permanent appreciation in growing India is Real Estate  in India right now. So overall you will get highest return from your investment. Moreover, if you also take loans for purchase of flat , that will further reduce your liability to tax for three years.\n2. Keep the amount of capital gains in Capital Inc&#92;vestment bond and as per law if you do not invest it withing next two years from the date of transfer, the amount will be the capital gain in the year in which such three years from the date of transfer of the flat completes. Thus you are only forwarding your tax liability by some years.\n3. Pay the tax.and be in peace!
4919
The have a few options... if the numbers work out then go for it. I believe,  that if your property was aquired from using a 1031 exchange, then you will have to hold the property for 60 months and live in this property for 24 months out of those 60 months to qualify for the tax exemption of gains up to 250k/ 500k if you are married and file joint returns. Depending on your need for the capital, liquidity, and when; would be the questions I would ask \nyourself. If it was me, I would look in to more real estate, maybe a 1031 exchange. What other investment can you not only cash flow from, but is a leveraged asset. Hope this helps.
790336
Really complex area - some boffins spend all their lives looking into this.\n\nThe abbreviated answer is:\n* Yes, definitely if the property is less than three years old\n* Maybe if the property is more than three years old\n\nTechnically if a property is more than three years old it is exempt from VAT but the seller can waive this exemption (known as 'opting to tax') if they wish.  This will mean 17.5% VAT is charged on the sale (which the seller doesn't get to keep).  The reason the seller might do this is becuase if they sell a building and charge VAT they're allowed to reclaim VAT on any related costs (such as legal fees).\n\nOnce a building is 'opted' you can't change that status even if it changes hands. Therefore the next time its sold on VAT would have to be charged on the sale.\n\nThese rules only apply to commercial property - not residential.\n\nTrust me - get an accountant/tax adviser to assist - really complex area.
458771
I'm not sure where abouts you are but I have two investment properties and can recommend the following:\n\nLook for low maintenance properties -  minimal gardens etc\nCheck out local infrastructure, public transport, schools shops etc\nTry to keep within 10km of the CBD
597227
did you use the interest and taxes as deductions in the past (you should not have technically)\n\non non personal property (you did not live there) that is not (has not) generated income the interest and taxes are added to the base cost of the property (this will help reduce your gain; it is not a capital gain though)\n\na property that is purchased to be sold and not rented is treated the same way as inventory would be treated (you pay income tax, it is not a capital gain)\n\nif you have a loss it is applied against your income to reduce your taxable income\n\n\n\nTaxation – Lesson 7\nCMA Canada - July 2004 Page 31\nBusiness income versus capital gain\nIn most cases, a business is readily identifiable by the nature of its activities. For example, the manufacture and development of computer chips for resale would constitute\na business. Sometimes, however, it is difficult to distinguish whether income from a transaction is business in nature or capital gain. The sale of land can be either a capital transaction or a business income transaction depending on the facts of the circumstances.\nThe distinction is important because, as you will see, business income is fully taxed whereas only one-half of capital gains are taxed. Moreover, business losses can be\napplied against all other sources of income (e.g. capital gains or employment income), whereas capital losses are only available for offset against capital gains. Business income\nis taxed less favorably while business losses are treated more preferentially. The full amount of business income is taxed in the year that it is earned while only one half of\ncapital gains are taxable, in the year in which the gain is realized. Business losses, unlike that of capital losses, can be used to offset income from all other sources.\nThe chief factor in distinguishing a business activity from a capital gain transaction is the intended use of the property on acquisition. The principal reason for the purchase and the subsequent use of the property will determine the type of income of the profit (loss)\ngenerated upon sale. If the property was acquired for the purpose of resale, then its disposition is likely business income. i.e. if the property purchased is considered\ninventory, then all profits triggered upon sale would be considered business income.\nConversely, property acquired for the purpose of providing the owner a long-term benefit is likely capital property; its disposition creates a capital gain or loss, i.e. any gains generated upon the sale of capital assets used in the course of running a business are deemed to be capital gains.
536353
Over the long haul, you'll make more money renting if the property values are increasing in that area.  HOWEVER, there are risks in renting like shady tenants who don't pay or trash the place, and there is a lot of upkeep in between the tenants that will cost you.  So it's really up to how much work you want to put in.  Also, if you can't find a tenant then you're paying your current rent plus the cost of the flat, so that should be considered.
1030996
1) Yes\n2) The easiest way would be to rent your property to a Non Resident Alien and he will pay with CASH and you don't have to report anything.\n\nI asume you mean a house.\nIf you are buying commercial property then you won't be able to do it that way unless the business owner is also a Non Resident Alien.\n\nWhere is your property? (State)\nThe laws are not the same everywhere.\n\nTop 3 Answerer in Business & Finance. (Vote for me)
996500
60% in real estate, 22% in SPDRs, 12% in a diversified monthly income fund, 6% in a resource fund. For fun you can dabble in forex (I recommend Hang Seng Bank), but not more than a couple of percent. It's ok to discuss your situation with an investment adviser, but DO NOT hand over control of your portfolio! You have to pilot your own ship.
146442
Buying real estate with literally nothing down is very very difficult.  It is possible, but you need perfect timing, and the perfect deal.  I have a client that was almost able to do it.  It would have grossed around 70k profit.  But at the last minute, he had to come out with $3-4k to cover a few costs.  (It's not no money down, but pretty darn low for 70k profit)  Don't buy into the late night infomercials.  Go get yourself some books on the subject.  And read them.  Then read them again.  Then... jump in.  You are always going to risk something.
769801
Sure you can... talk to a discount broker. You can also throw your money into your trash can for faster results.
552739
Yes, often and have sold them...\n\nYou need to take into consideration the property type when it comes to value.\n\nA single family home occupied by a tenant will be less valuable to a home buyer if they are considering occupying the property.  But, that same property might be desirable to an investor because of it's appreciation potential and it's cash flow.\n\nApartment buildings are typically the same.  Most investors are interested in the cash flow of the property as well as potential for them to raise rents according to the rental market, aka Upside.\n\nIn the end, investment decisions with rental properties are made according to their ability to monthly service their expenses with premiums paid for income/appreciation growth potential.
131724
The more you buy,the cheaper you can sell.The cheaper you sell,it helps those whom can not afford all.Profit will come with honesty.You need to research wholesale wharehouses out of N.Y.
207299
Lease the land if you want an immediate begin to profits. Otherwise, depending on the economic development of the area, it may be best to just keep the land cleared and wait. It's value may increase greatly and you can then sell. The best thing would be to talk to a real estate developer.
976939
YOU MAY WANT TO READ THIS ANSWER -- THE OTHERS ARE WRONG !!!\n\nYes, your understanding is correct that when you convert a rental property into a principal residence there may be capital gains consequences.\nIf you have never lived in this property but are contemplating doing so, what you need to do in order to determine whether there is a gain is to obtain a current "fair market value" of the property. In your case, you will want as low a value as possible, so get it appraised or ask a real estate agent to give you a potential selling price given the area, market values, and condition of house (so get this done BEFORE you make any repairs).\nTo determine if there is a CG : take the current FMV and subtract from it the price you purchased the house for (example....if you bought it for 80K and it is valued at 96K when you move in...then your gain is 16K) but from this 'gain' you get to subtract any costs or outlays you incurred (these include legal bills to purchase the property + land transfer taxes + appraisals + capital improvements to the property that were never expensed such as new furnace or new roof or new appliances etc....) so to continue the example...if these totalled 12K, then your CG would now be 16K - 12K = 4K...so you would need to pay tax on HALF of this gain or 2K. The tax would be whatever your tax rate is for your income level x 2K (21%, 31%, as high as 46%).\nIf your CG is actually negative, then there is NO tax owing as there is NO capital gain.\nAlso, here's a small but significant point, if you have not been claiming the rental income on your tax returns these past years, then you certainly would be foolish to all of a sudden claim capital gains.\n\nIn a nutshell, you will want to have as LOW a fair market value as you can currently, have as many outlays accounted for as possible (many of these will be found on the Statement of Adjustments from the lawyer at time of purchase -- also any bills for improvements) as these go to lessen the 'actual' or deemed gain.\nAlso, if you initially did live in the house for a time and then converted to rental...then this may be of benefit as when you converted to rental (there is no CG as it was primary residence) the FMV at that time becomes your ACB - Adjusted Cost Base, which you use to calculate the CG instead of the purchase price.\n\nAlso, be careful reading the advice some are giving -- they really sounded unknowledgable.
839169
This question screams for a lawyer.\n\nIf both businesses are sole proprietorships, you could make the case that you had sold the business to him to make good your rental debts. Technically, in a transaction like this, the buyer of a company takes on both the assets AND the liabilities... Unfortuantely this sounds like a sales contract was not drawn up.\n\nI suggest, since you're obviously not rich, that you at least seek some pro bono guidance from a legal clinic. Good luck.
1047746
Nothing personal BUT I dont agree with the comment to hold a property for a short term. A true investment in Real Estate is one that is held for profit in the long term.\n\nIF you are a speculator or flipper (which sounds like you are not) you might want to becareful. This is not the right market to be doing that.\n\nAll in all SFR are less hassle because you dont have to take care of multiple unit problems and problems between the tenants but of course you have the benefit of better cash flow in Multiunits. So it's really what you are trying to accomplish with your INVESTMENT!.\n\nGood luck
145694
well, generally they lease commercial buildings (defined period with contract) not rent, and your local realtor can help you with this since lots of major realty companies list these "commercial lease buildings".\n\nif you were looking to buy an ongoing business, such as a spa or beauty salon, then your best bet is to start in the major newspaper's classifieds "businesses for sale" section.  There are also a few firms that specialize in buying and selling of businesses only, but i don't know where you are, nor can i recall any names at the moment.  try searching for " sell your business" on the net, maybe you'll get some compnanies that specialize in that.  good luck!