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The only certainties in Life are 'Death and Taxes'

You have probably seen in the news mention of new government information gathering powers along with new property tax rules.

It looks as though all the information will be needed before a sale or purchase can be finalised so Swift and those in the real estate industry are in the front line again!

Watch for the changes due to take effect 1 October. 

The legislation is only in draft form but as you will possibly be dealing now with transactions that will settle after 1 October, here’s a heads up.

If the law passes unchanged there are a number of points to watch;

Information Collection

Before any land transaction can be registered the following is required;

• Detail of the use of the property by the vendor and intended use by the purchaser - eg rental, residence etc.
• Vendor’s history of land sales.
• Tax residency status of vendor and Purchaser.
• IRD number for vendor and purchaser. If overseas tax resident the overseas number and a NZ bank account.
• Trusts will now require a tax number – many don’t have one and will not be impressed by having to join the tax regime, so they should be warned.

2 Year Rule

Property sold within two years will be liable for tax on any profit. Note – time is measured from registration on title to date of sale contract. There is a main home exemption and a few others but not many.

• Posted By: Richard Ayton on Thu, 23rd Jul 2015 @ 16:07:56

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