What are the tax implications of equity sharing?

What are the tax implications of equity sharing?

Equity sharing can have various tax implications, including capital gains tax and income tax on rental income. Would you like to know more about specific scenarios?

Yes, what happens if I sell my share?

If you sell your share, you may be subject to capital gains tax on any profit made from the sale. The rate depends on how long you've held the asset.

Are there any deductions I can claim?

Yes, you may be able to claim deductions for expenses related to the property, such as maintenance and management fees, which can reduce your taxable income.

What if I decide to rent out my share?

Renting out your share can generate rental income, which is taxable. However, you can also deduct related expenses, similar to selling.

Is there a difference in tax treatment for short-term vs long-term rentals?

Yes, short-term rentals may be taxed differently, often treated as business income, while long-term rentals are typically considered passive income.