lifestyle block and GST
Nov 9th 2015, 5:17 am
#1
Forum Regular
Thread Starter
Joined: May 2005
Location: Bay of Plenty
Posts: 282
lifestyle block and GST
Hi, any of you guys sold a lifestyle block that is GST registered? We registered our block years ago with the intention of doing stuff with it. But ended up having kids. Money and time has been tight. Never turned it in to our dream nursery. Just ended up running animals on it. Anyway we are now selling, wife wants to go back to England.
The question is - do you deduct the house, I think it maybe 1/16th, off the sale price to give the GST liable amount for the final return.
I think when we registered this is what happened, but Gst was only 12.5% then.
Many thanks for any advice received
The question is - do you deduct the house, I think it maybe 1/16th, off the sale price to give the GST liable amount for the final return.
I think when we registered this is what happened, but Gst was only 12.5% then.
Many thanks for any advice received
Nov 9th 2015, 7:08 am
#2
Lost in BE Cyberspace
Joined: Jun 2005
Location: In a large village called Auckland
Posts: 5,249
Re: lifestyle block and GST
As I understand it there are conditions attached to having the property registered for GST (1) that it is used to generate income / further taxable supplies for the benefit of NZ Government and (2) that it's not your principal place of residence.
Seems you don't meet either of those criteria.
Besides those major details not being evident, I suggest you pay someone for proper advice, as there's no middle ground with IRD and getting it wrong can be a very costly exercise.
Seems you don't meet either of those criteria.
Besides those major details not being evident, I suggest you pay someone for proper advice, as there's no middle ground with IRD and getting it wrong can be a very costly exercise.
