The land was inherited by this person before 1981.
Where should he obtain FMV as of 1981 of the plot?
He constructed a very small one-story office during 1981-82. He does not have any receipt of the construction. What should he do to prove the construction?
What aspects of maintenance would count, if any? He installed electricity, hired a cleaner, built boundary etc.
He had to fight in court for years to claim his inheritance - Will lawyer fees etc. count as cost of acquisition?
He lives in US, and he had to fly twice to India to settle the deal. Does the airfare count as expenditure?
Clarifying Long-Term Capital Gains Tax on Inherited Property: FMV, Construction Costs, and Inheritance-Related Expenses Explained An individual inquired about the long-term capital gains tax implications of selling an inherited office property. The land was inherited before 1981, and the individual sought advice on determining the fair market value (FMV) as of 1981 and proving construction costs without receipts. Responses suggested consulting a registered valuer for FMV and construction costs, including expenses like electricity installation and boundary construction. Opinions differed on whether legal fees and airfare related to inheritance disputes should be included as acquisition costs; one response affirmed their inclusion, while another did not. (AI Summary)
TaxTMI 
TaxTMI 
