All Topics / Legal & Accounting / GST on sale of property

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  • Profile photo of WakeWake
    Participant
    @wake
    Join Date: 2003
    Post Count: 123
    May 5, 2006 - 9:42 am

    Hi All
    I’m sure this has been answered before but I have searched and can’t find the exact answer.

    Friends bought land and built an IP in 2004 (they are not GST registered so no credits ever claimed). It has been rented, and although their original intention was to hold long term, they are now looking at selling.

    As the IP is less than 5 years old, will they have to pay GST, and if so will it be one eleventh of the sale price, or is it more complicated?

    Thanks
    Wake

    Profile photo of coastymikecoastymike
    Participant
    @coastymike
    Join Date: 2005
    Post Count: 125
    May 5, 2006 - 10:35 am

    Wake,

    You would need a lot more facts to make a decision. Best to discuss with an accountant who has an indepth knowledge of GST.

    As a starting point they should consider Miscellaneous Taxation Ruling MT 2000/1 and Goods and Services Tax Determination GSTD 2000/8.

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