GST on Newly Released Land

Viewing 6 posts - 1 through 6 (of 6 total)

vmatthews
Participant
@vmatthews
Join Date: 2004
Post Count: 2
June 8, 2018 - 3:46 pm
greetings!
i’d appreciate your help, on the question of GST on newly released residential land. If registered for GST as company/trust can the GST component (now paid by the purchaser, not vendor from July 1st) be claimed back in the BAS ?
thanks for your help
Vic Matthews
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 9, 2018 - 12:05 am
If the purchaser of the land incurs GST on the purchase and they are registered for GST then it may be possible to claim the gst back. But if the intention is to build residential property to rent out long term then you might not. if you claim the GST back and then sell within 5 years then you might have to make a GST adjustment and pay some back.
Speak to your lawyer to confirm.
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
Venkat
Participant
@vthatiko
Join Date: 2015
Post Count: 3
August 7, 2018 - 4:26 pm
Good Day,
I have a question on the GST. I have bought a block of land in a new residential estate and I want to sell it now. This is on my personal name and not a company or not registered for GST. The question is do I have to ask the purchaser to hold the GST portion and settle the remaining? If so how can I claim the GST back?
A couple of years ago, I have sold a vacant land in a brand new estate and did not paid GST on that but also availed 50% CGT discount.
What is the difference from now and then?
Appreciate your advise.
Regards,
Venkat
Venkat
Participant
@vthatiko
Join Date: 2015
Post Count: 3
August 7, 2018 - 4:26 pm
Good Day,
I have a question on the GST. I have bought a block of land in a new residential estate and I want to sell it now. This is on my personal name and not a company or not registered for GST. The question is do I have to ask the purchaser to hold the GST portion and settle the remaining? If so how can I claim the GST back?
A couple of years ago, I have sold a vacant land in a brand new estate and did not paid GST on that but also availed 50% CGT discount.
What is the difference from now and then?
Appreciate your advise.
Regards,
Venkat
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 7, 2018 - 4:45 pm
residential land is generally subject to GST so if you are registered or required to be registered and are conducting an enterprise you will need to remit 1/11 of the purchase price to the ATO.
Seek 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
Venkat
Participant
@vthatiko
Join Date: 2015
Post Count: 3
August 7, 2018 - 5:48 pm
Appreciate Terry for your help.
In such case do I need to let the purchaser to hold the GST and settle. They the pay the GST directly to the ATO?
I am not sure as an individual who negatively gears property on the PAYG by availing 50% CGG discount after holding the property for more than 1 year still require to pay the GST and how can I claim the GST credit and avail the 50% CGT discount on the land that I’ve bought it over two years ago.