Hi there,has anyone has experience in rent to own agreements,lease to own,or vendor fianance.
I am doing some of these at the moment, but since i am a property trader, i wonder how the GST is treated by the IRD.
Since i still dont own the properties,i would assume i cannot claim and cannot pay GST,in either way.
My intentio is to re sell them after some cosmetic work,of course with the current owner permission which i already have.
The price is fixed at 2 years term,but flexible,so i can settle before or after that.
Talking with some accountants, i was told a rent to own agreement is treated like a hire purchase for GST purposes, and i can claim GST on the purchase price and pay GST when i sell.
I want to make sure this is the case, as otherwise i have to pay penalties if i get it mixed up.
Any good advise will be really appreciated thanks very much.
I am doing some of these at the moment, but since i am a property trader, i wonder how the GST is treated by the IRD.
Since i still dont own the properties,i would assume i cannot claim and cannot pay GST,in either way.
My intentio is to re sell them after some cosmetic work,of course with the current owner permission which i already have.
The price is fixed at 2 years term,but flexible,so i can settle before or after that.
Talking with some accountants, i was told a rent to own agreement is treated like a hire purchase for GST purposes, and i can claim GST on the purchase price and pay GST when i sell.
I want to make sure this is the case, as otherwise i have to pay penalties if i get it mixed up.
Any good advise will be really appreciated thanks very much.
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