r2i forum

My query is:
I have a friend (US Citizen), wants to sell his Cold Storage business in India and with the sale proceeds ( including his Capital Gains) he wants to buy a hotel in USA. He will do 1031 exchange to deffer the taxes in USA. However since he is selling business and buying business within 6 months from selling date of his business, can he get exemption for Capital Gains from Indian taxes? How can he transfer money to pay for his purchase in USA? Will bank will hold some money for his Capital Gain Taxes? Please advise.

Dear Bigdada,

From the little information which is given, the transaction will be subject to taxation in India, now whether it will be capital gains or ordinary income tax will depend on how the sale is done. For eg:

1) Is the Building been sold separately.
2) Is the business a private limited entity or what other structure it is?

Few more details on this can help understand the situation more clearly and then we can provide the appropriate advice. You can reach us with more details on [email][email protected][/email] or visit us at www.kkassociate.com

Regards,
KKA
www.kkassociate.com
US and India Tax Filers and Advisors.

Bigdada;591355My query is:
I have a friend (US Citizen), wants to sell his Cold Storage business in India and with the sale proceeds ( including his Capital Gains) he wants to buy a hotel in USA. He will do 1031 exchange to deffer the taxes in USA. However since he is selling business and buying business within 6 months from selling date of his business, can he get exemption for Capital Gains from Indian taxes? How can he transfer money to pay for his purchase in USA? Will bank will hold some money for his Capital Gain Taxes? Please advise.