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  1. #11
    Join Date
    Oct 2013
    Posts
    1,609

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    Quote Originally Posted by investorak View Post
    Im just curious at this stage and im sure others also are. Does every tax question on here just get the "you need expert tax advice" speel. People obviously should not take tax advice on here and put it in action without running it past their accountant but general tax information should be shared on here shouldnt it?

    Can anyone provide any general advice on this?
    There's a lot of fairly specific, free tax advice on this forum. I've got a lot of clients from giving out free advice here.

    But when it comes to subdivisions, there really isn't general advice. It's very specific, with a lot of legal hooks. Ross has answered the question about as well as can be expected.
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
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  2. #12
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,581

    Default

    Quote Originally Posted by investorak View Post
    Im just curious at this stage and im sure others also are. Does every tax question on here just get the "you need expert tax advice" speel. People obviously should not take tax advice on here and put it in action without running it past their accountant but general tax information should be shared on here shouldn't it?

    Can anyone provide any general advice on this?
    Hi Investorak,

    Look through my history. I answer a huge number of questions and give out some great information. But I also don't want to give incorrect advice and I also don't want to get caught out somehow and be liable. Unfortunately lots of people will take advice through forums without getting full advice, so everyone has to be extra careful with the advice they provide.

    I also answered the original question for a person's specific circumstance and question. Generally this is the only kind of question I choose to answer.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  3. #13

    Default

    Quote Originally Posted by Rosco View Post
    Hi,

    Tax on any land transactions are difficult. There are lots of ifs and buts. Therefore it is impossible to give full advice on a forum and you really need to go through all your history and situation carefully with a property accountant.

    I can give some general information;

    1) If it is your personal house, 4500m2 or less, owned in personal names, and subdivision done creating one section, then if section sold unlikely to be taxable.

    2) Normally if you have held a rental property for 10 years before starting the subdivision process, then subdivide into 2 lots. Then gains shouldn't be taxed.

    3) If you then build a house on either 1) or 2) with the intention to selling for a profit, then likely house profits will still be taxable

    One nasty catch for example, CB 15 . Say you haven't provided the full information, and actually this property was owned by a development entity 15 years ago, then sold to your long term entity or personal names over 10 years ago. Suddenly this would change to taxable, even though held for over 10 years in long term entity.

    Ross
    Hi Ross

    In relation to your point 3) which of the CB do you believe would be triggered that lead to your opinion of being liable for tax on profit ?(for a typical family home owned for over 10 years and no other history of property transactions and no related builders or developers etc)

    Building on your opinion in point 3) can I assume if you retain the new house but sellexisting house after subdivision then the sale of the existing house wouldn't generally be taxable?

    Seems odd that you would get taxed if you sold new house but wouldn't get taxed if you sold existing house (and retained new house) or you sold the subdivided land as a vacant section.


 

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