Tax on Buying and Selling Land

[Winny]

Hi, I currently own a main house and am considering purchasing a piece of land to build a house on in the future. I have a few questions:

1. Can the mortgage interest on the land be relieved in the same way as with rental property?
2. Will the land be subject to taxes if it is sold after 10 or 20 years without any development or subdivision?

[donna]

Good questions Winny and GRA (see banner above) definitely can answer that for you. They are property accountants that do a lot of development etc

you may be able to get a loan at a ridiculously low rate - for development and new builds.

Not sure why you’d be able to treat the bare land the same as a rental property as it’s not one - no rental income etc.

The bright line test is 2 years however capital gains tax can’t be far off being a reality in NZ.

regards
Donna