Taxation of Land 2026 — When bright-line doesn’t apply (live webinar)

While the bright-line test is often the most well-known land tax rule, it only needs to be considered from an income tax perspective, if land that is sold is not taxable under the wider land taxation rules. Theree reality is that there have always been land taxation rules that can apply to the sale of land, and these need to be considered first. The taxable income amount may be less under the land taxation rules than under bright-line (which applies last and only if no other rule results in a taxable land sale).  This course will look at the rules and the consequences in terms of cost base and deductibility as well as the taxable nature of the sales.

The land taxation rules have been in place for many years and continue to apply to many property transactions, despite the existence of the bright-line rules. In practice, the bright-line rules have made many lose sight of the land tax rules that need to be considered when selling property and the outcomes that can follow from them.

For instance:

• Some property transactions could be taxed but fall outside of a bright-line period
• Some could be taxed well after 10 years, including many residential subdivisions.
• There are associated person provisions that can capture many transactions not caught under the bright-line rules.
• There are better outcomes that can arise under the general land tax rules that are not available under the bright-line rules.

This session will work through the land taxation rules and how they can apply. We will look at practical examples highlighting the rules and the outcomes in terms of the cost base applied to determine taxable income.  

We will cover, amongst other things:

• Who is a developer?
• Who is a builder?
• When an intention of resale is formed and how it can be established evidentially.
• Business
• Association
• What cost base can be applied?
• How a development or subdivision of land can be subject to tax many years after purchase? 

Upon satisfactory completion of this activity you will be able to know/understand:

• Understand when and how the land taxation rules might apply
• Determine whether association is established at the necessary time
• Understand options for restructuring land ownership and taxation implication
• Help clients to understand what the tax cost might be on transfer or sale. 

Suited to:

• Accountants at all levels.
• Lawyers providing advice on Agreements for Sale and Purchase of land. 

Duration: 1.00 CPD hours (approx. 55 mins content + 5 mins Q&A)

PRESENTER

Daniel Gibbons, Partner, Findex/Crowe

Daniel is a Partner for Findex in Queenstown.  Daniel has been with Findex for 18 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.