24 Subdivision of Land - Will it be Taxed? (Webinar Recording)
excl. GST - Broadcast Date: 10 September 2024
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Product Description
Taxation of subdivisions does not just apply to property developers. With a cost-of-living crisis impacting many New Zealand families, we are seeing a large number of properties being divided and part of the land being sold. Whether the motivation is to pay down debt, or provide funds to meet living costs, help family, or to invest and earn income, the division of land can give rise to a taxable outcome.
There are specific taxation provisions that apply to subdivisions/developments which can capture even small “one off” subdivisions. You don’t need to be in the business of developing or completing a large-scale project for these rules to apply. The rules will also become more relevant with the bright-line period changing back to a 2-year test.
The number of lots created, the amount of work done, the cost of the work, the nature of the work, and the intention of the owner on acquisition all impact the taxation treatment on sale, both from an income tax and a GST perspective. In some cases, there may also be income tax exemptions that can apply, which are different to other land rules.
Finally, there is the IRD view on remainder or residual land that also needs to be taken into account. This webinar will look at the taxation rules around subdivisions and work through scenarios to provide guidance on how the rules might be applied to various situations. The session will be a mix of technical rules and practical application.
Upon satisfactory completion of this activity you will be able to:
• better understand how the land tax rules might apply to various subdivisions, ranging from large scale subdivisions with multiple lots to one-off simple boundary adjustments.
• work through how the legislation, the Court cases, and the IRD statements can be read together to better understand the outcomes.
• apply the rules to your clients’ situations.
Total of CPD Hours: 1.25 (1 Hour 15 min)
Suited to:
Real Estate Agents, accountants and lawyers with clients who undertake subdivision work on land, regardless of when it was acquired or sold.
PRESENTER:
Daniel Gibbons, Partner, Findex/Crowe
Daniel is a Partner for Findex/Crowe in Queenstown. Daniel has been with Findex/Crowe for over 15 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures. Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.