Sell or rent out property?

Should I sell or rent out my property?
These questions arise at least once in the life of every individual or business. In today's complex taxation system, you need to take a careful decision otherwise you can loose a lot of money through taxes. But a careful planning can help you to save taxes. In our case a person wishes to sell a property because she feels she has a great offer and an opportunity to make good profit. Looking at all the possibilities of saving taxes by using Excel the property owner decides to keep her office on rent. The following training video shows the calculations in detail. In such cases it always safer to consult a chartered accountant.

The first step in the decision making is to find the cost of acquisition of the property as on date taking into account the actual purchase price, the cost of registration of the property and inflation
Next we calculate our capital gains and the tax thereon.
Now we can compute the net income from our net sales proceeds by depsoiting the money in a bank as fixed deposit
We discover that there is no major advantage in selling the property at the offered rate.

More calculations taking into account the fact that we can deposit our total sale consideration in tax free bonds also shows that the sale at the offered price may not be a great advantage. In short, Excel spreadsheets offer great help in our decision making in many such situations!

Sell or rent property?