Registered sale deeds are sufficient to prove capital loss
2) bank statements showing amount paid by you and received by you can substantiate your claim
3) obtain certified copy of sale deeds
4) get it translated into English
Documentations required to prove capital loss
I am selling a property for 26 lakhs with 5 lakhs capital loss. Since I am an Australian citizen there will be aprx 22% TDS. I should be able to claim the TDS back soon showing the capital loss. Wonder if anyone can clarify the documentation required to claim the tax return so that I can secure those documents during or prior to the sale. The sale deed of my purchase back in 2014 and the one currently created for my sale are both in local language malayalam. 1. Are these two sale deeds enough to prove the capital loss and claim tax return, what else is required? 2. I can only get photo copies of these as the buyer will keep the originals. Should I notarise them to be an acceptable proof for tax claiming? 3. Should I translate these to English and notarise, so that I can also prove it as capital loss in Australia?
Asked 4 years ago in Property Law
Religion: Other
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4 Answers
Capital assets held for personal use that are sold at a loss generally do not need to be reported on your taxes. The loss is generally not deductible, as well. The gains you report are subject to income tax, but the rate of tax you'll pay depends on how long you hold the asset before selling.
Most people use the Schedule D form to report capital gains and losses that result from the sale or trade of certain property during the year. As of 2011, however, the Internal Revenue Service created a new form, Form 8949, that some taxpayers will have to file along with their Schedule D and 1040 forms.
If you have a deductible loss on the sale of a capital asset, you might be eligible to use the losses you incur to offset other current and future capital gains.
- Capital gains and losses are generally calculated as the difference between what you bought the asset for (the IRS calls this the “tax basis”) and what you sold the asset for (the sale proceeds).
- Certain assets can have "adjustments" to the basis that can affect the amount gained or lost for tax purposes.
- Taxpayers can attach a separate statement with the transaction details in a format that meets the requirements of Form 8949.
- Taxpayers can omit transactions from Form 8949 if:
- They received a Form 1099-B that shows that the cost basis was reported to the IRS, and
- the form does not show a non-deductible wash sale loss or adjustments to the basis, gain or loss, or to the type of gain or loss (short term or long term)
- 1. You can have the copies of both the registered sale deeds.
- 2. You can get the certified copies of the registered deeds from the registrar's office.
- 3. You can get them translated to English language for all practical purposes.
Capital losses and capital gains are reported on Form 8949, on which dates of sale determine whether those transactions constitute short- or long-term gains or losses.
Long-term capital gains, in which investors are taxed at rates of 0%, 15%, or 20% when profiting from a position held longer than one year, are likewise offset by capital losses realized after one year.
Form 8949 reports the description of assets sold, the cost basis of those assets, and the gross proceeds from sales, ultimately determining whether aggregate sales result in a gain, loss, or wash. A loss flows from Form 8949 to Schedule D, which determines the dollar amount used to reduce taxable income.
Dear Sir/ Madam
You should have the copies of the registered sale deeds, along with the certified copies issued from the Registrars office. In order to substantiate your claim, please provide the banks statement showing the transactions. Get it translated to English.
- Capital losses can be used as deductions in the tax return
1. Yes
2. You should apply for getting certified copy of the sale deed , a photo copy may be rejected at the time of tax claiming.
3. Yes
