Capital gains from house sale are invested in property in wife's name.Is the tax exemption still available ?

Question

Capital gains from house sale are invested in property in wife's name.Is the tax exemption still available ?

Answer 1

Read about the requirements of long term capital gains exemption on the purchase of residential house under section 54 http://mytaxes.in/index.php?topic=31.0

To be safe, purchase property in joint name.

Answer 2

No.

The sold house and the new house must be in the same name. Or the seller of the house must have some share in the new house.

The seller have to buy a Flat or house/construct a house with the house sold amount. Just buying a plot is not allowed. Also the sold house must be a long term capital asset. (Hold for more than 3 years)

Answer 3

it ll depend on ur wifes income

Answer 4

Tax on a home sale has nothing to do with what the proceeds are used for any more.  That rule went out about 10 years ago.

If you lived in it as your main home for two of the five years immediately before the sale, and owned it for at least two of those same five years, you can generally exclude $250K of gain from being taxed ($500K on a joint return).