The rules for determining when the sale of land will be subject to income tax are complex, and the application of some of those rules is more of an art than a science.
Inland Revenue has received increased government funding to audit land transactions which, coupled with the requirement to provide tax-related information when land is bought and sold, enables Inland Revenue to target land sales more effectively than ever before. Given the amounts involved, failing to understand or address the tax issues that arise when undertaking land transactions can have serious consequences.
This webinar provides a complete overview of when the sale of land can be subject to income tax (including under the bright-line test) and will keep you up-to-date with recent tax reforms, case law and IRD policy.
- Know the circumstances in which the sale of land will be subject to income tax, and when the various exclusions apply
- Understand Inland Revenue’s latest views on when land is acquired with a purpose or intention of disposal
- Learn how the “bright-line” test interfaces with the other income tax provisions that apply when land is sold
- Learn about the various exclusions that apply to the sale of private residences, and Inland Revenue’s approach to applying those exclusions
- Understand when a client will be treated as a “dealer”, “developer” or “builder”, and what income tax implications arise from this
- Know when subdivisions and other land developments will be subject to income tax, including the income tax treatment of retained land
- Understand what income tax issues arise when land is transferred between associated persons
- Know what questions to ask clients to determine whether the sale of land is likely to be subject to income tax
Junior and intermediate accountants, property lawyers and others who advise clients on land transactions.
ORIGINAL BROADCAST DATE
8 June 2017
Stephen Tomlinson, Partner, Tomlinson Law