Now that the Brightline rules have been reduced to a two-year brightline period, the implications for landowners need therefore to focus on the remaining land taxation provisions.

While fewer are expected to be captured by the brightline rules, it will be important to ensure that before deciding a property sale is not taxable, you have fully considered whether the land taxation rules might apply.

Understanding how the rules will apply to land dealers, developers, subdividers, and builders together with their associates is increasingly important.

The effect of these provisions can result in land being subject to income tax when it may not have been if disposed of by someone who was either not in that business or not associated to someone in that business. Association is a key factor when looking at these provisions. In some circumstances it can mean that there are tax considerations on sale. On the upside, interest deduction limitations may not apply.

This webinar will consider practical examples to help you understand:

• What these taxing provisions are and how they apply;
• When a person might have a ‘land related business’ and whether this requires a certain frequency of property transactions;
• When a person might have a building, dealing or developing business;
• What a ‘building improvement’ is and how performing those improvements can impact on the taxation of land;
• Who is associated and what is the impact;
• What exclusions apply, including when a person can no longer rely on a residential or main home exclusion because they have a ‘regular pattern’ of buying and selling land.

Upon satisfactory completion of this activity, you will be able to:

• Identify when the specific provisions of the Income Tax Act 2007 may apply to land disposed of by persons in the property industry;
• Understand who might be carrying on a land dealing, land development/subdivision or land building business;
• Determine whether a person has a regular pattern of buying and selling land.

This course will be suited to:

• Accountants, Lawyers, and others providing professional advice and support to the property industry.

Total CPD Hours: 1.00 (50 mins content + 10 mins Q&A)

PRESENTER:

Daniel Gibbons, Partner, Findex/Crowe
Daniel is a Partner for Findex in Queenstown. Daniel has been with Findex for 17 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures. Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.