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CapGains
New Member

Reporting Capital Gains for India property sale

I sold my house in India in January 2025, ~15 years after purchasing it, and immediately reinvested the long term capital gains from that sale into purchase of a new flat. Thus I am expecting a full refund of my TDS in India when I file taxes this June. When I report the capital gains on my US taxes in 2026, can I expect there will be no cap gains tax in USA since I reinvested all cap gains toward purchase of a new house?

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1 Reply
MaryK4
Expert Alumni

Reporting Capital Gains for India property sale

Most likely not- you might be able to avoid tax if it is a Like-Kind exchange- Like Kind exchange only applies to real property that is business property and there are other requirements.  See What is a like-kind (Section 1031) exchange?

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