GST issue

Viewing 11 posts - 1 through 11 (of 11 total)

cheetah
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@cheetah
Join Date: 2004
Post Count: 3
February 5, 2004 - 7:16 am
Is GST payable on all property investments?[]
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 5, 2004 - 7:56 am
No
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 6, 2004 - 2:59 am
Sorry about my short reply. let me elaborate:
There is no GST payable on established properties but you will have to pay GST on things like agents commissions etc.
If you are getting a property constructed, then you would pay GST on the construction portion, but not on land.
Commercial properties are different and apparently you have to pay GST on the purchase on these.
Hope this helps. ps I am not an acocuntant, so may be wrong.
Terryw
Discover Home Loans
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
woodsman
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@woodsman
Join Date: 2004
Post Count: 714
February 6, 2004 - 3:02 am
So on newly built property, is there any way one can claim back the GST you pay on the construction portion.
James
Shushar
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@shushar
Join Date: 2003
Post Count: 190
February 6, 2004 - 3:41 am
I’m not an accountant either – but I thought GST was payable on commercial property?
Shushar
“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
Elysium-M
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@elysium-m
Join Date: 2003
Post Count: 259
February 7, 2004 - 5:31 am
GST is payable on commercial properties, but if you structure the deal so that the property is sold as a going concern, you won’t have to pay GST.
In order to qualify the property as a going concern, it needs to be sold with everything necessary to conduct the enterprise. You also need specific wording in your contract. Go to the ATO website and look for the GST Ruling on going concerns.
Cheers
Elysium-M
DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
woodsman
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@woodsman
Join Date: 2004
Post Count: 714
February 7, 2004 - 5:39 am
Any way to claim back GST on new residential property?
James
Elysium-M
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@elysium-m
Join Date: 2003
Post Count: 259
February 7, 2004 - 6:12 am
Sorry James. I don’t know the answer to that question. I expect that if you’re selling the property, you’d pass it on to the buyer (ie the buyer pays you the extra 10% for GST, which you then pay to the ATO); and if you’re buying the property, the GST component simply forms part of your cost base.
There is a way for developers to make some type of election which turns the sale of the new properties into a GST-free (or maybe just input-taxed) supply. It’s on the tip of my tongue, but I can’t remember what it’s called.
Cheers
Elysium-M
DIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
Julia
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@julia
Join Date: 2004
Post Count: 217
February 7, 2004 - 2:41 pm
georgisj Posted – 07/02/2004 : 14:39:10
Any way to claim back GST on new residential property?
James
No, if you are going to use it as a domestic rental property.
Julia
betterbiz
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@betterbiz
Join Date: 2003
Post Count: 47
February 13, 2004 - 3:30 pm
Julia
I would have said it was Imput Taxed regardless of its subsequent use?
Prop16
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@prop16
Join Date: 2003
Post Count: 145
February 22, 2004 - 2:12 am
Do we have to declare the rental income of an IP in the quarterly Business Activity Statement (BAS)?