GST paid on a retain, build and sell residential subdivision

Viewing 4 posts - 1 through 4 (of 4 total)

macka5
Participant
@macka5
Join Date: 2015
Post Count: 3
June 29, 2016 - 5:36 pm
Could someone give some insight into paying GST on a retain, build and sell residential subdivision.
Is GST payable on the retained dwelling or just the newly constructed dwelling?
Is GST exempt if the dwelling is held for a specific amount of time?
Thanks in advance.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 29, 2016 - 9:12 pm
If you retain a property you will not have to pay GST as you won’t be selling. but you won’t be able to claim input tax credits either.
If you sell a new residential property you will need to remit 1/11th of the price to the ATO if:
you are registered or required to be resisted for GST,
you are carrying on an enterprise
etc
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
macka5
Participant
@macka5
Join Date: 2015
Post Count: 3
June 30, 2016 - 7:52 am
Thanks for your reply Terryw, although im still confused.
How long would I have to hold the property before selling, to not pay GST?
What are input tax credits?
Will I pay GST if im not registered to pay GST?
Under what circumstances would I not have to be registered to pay GST?
-purchased in a personal name?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 30, 2016 - 8:13 am
5 years possibly
credit for GST you pay
Perhaps
If you don’t sell, if you are not classed as an enterprise, if you are not required to register for GST
It doesn’t really matter what entity owns the property.
You need specific tax advice.
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