Tax on property transactions is complex. There are lots of ifs and buts, and the tax outcome depends on the specific facts in the situation.
From limited information, that is bound to not include all relevant facts, it is hard to say what the tax is and wrong to do so.
A few key points
- If you buy a property with the intention of seling for a profit, then it is taxable.
- But there are two exemptions, personal home or business premises
- A builder for tax purposes is someone who is in the business of erecting homes. So the so called builder could be a renovation expert or commercial builder, so not a builder for tax purposes.
- Just because someone is a builder for tax purposes , doesn't mean the property gains must be taxable. Again there are ifs and buts.
- Gift duty has been abolished. So a parent could lend children money interest free. Or gift them a deposit without tax implications. If the parents traded the properties, and made a profit through their names or entities, they would be responsible for the tax, but the gift of money to their children would still not be taxable to their children, unless the children were legally allocated the income, for example through a Trust.
Ross
From limited information, that is bound to not include all relevant facts, it is hard to say what the tax is and wrong to do so.
A few key points
- If you buy a property with the intention of seling for a profit, then it is taxable.
- But there are two exemptions, personal home or business premises
- A builder for tax purposes is someone who is in the business of erecting homes. So the so called builder could be a renovation expert or commercial builder, so not a builder for tax purposes.
- Just because someone is a builder for tax purposes , doesn't mean the property gains must be taxable. Again there are ifs and buts.
- Gift duty has been abolished. So a parent could lend children money interest free. Or gift them a deposit without tax implications. If the parents traded the properties, and made a profit through their names or entities, they would be responsible for the tax, but the gift of money to their children would still not be taxable to their children, unless the children were legally allocated the income, for example through a Trust.
Ross
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