Sold a rental premises

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Vishal Maheshwari

Articleship

45 Points Joined February 2015

Sold a business used premises(i.e depreciation claimed) after converting it to a rental one for 1-2 years. What is the nature of Gains & is the asset LTCA or STCA.

Replies (2)

Guest

difference between sales and purchase is more than 36 months it is LTCG ELSE STCG

Vishal Maheshwari

Articleship

45 Points Joined February 2015

Thanx for your expedious reply.

But i have a query

You mean Depreciation won't have any impact to make the asset Short Term.

Bcoz initially depreciation was claimed in the business & then the asset was used as a source of Rental Income for 2 years & then it was sold. (toltal Life of Premises is 6 years).

Will it still be LTCA.