There have been recent publications about when the sale of your home can be taxed even if you are not an investor. This applies as much to lifestyle blocks as to a residential home. Although lifestyles blocks are a taxation no-man’s land because they are neither a farm nor a house, they are often a home on which an activity is conducted.

This webinar will work through the income tax and GST rules as they apply to the sale of lifestyle blocks.

We will consider whether lifestyle blocks are a business, and if so at what point. In particular we will consider if this can impact on whether the sale of your block is taxable. We will look at the bright-line rules as they might apply and how the sale of your home might be caught.

We will touch on the interest deductibility rules and how those rules apply.  We will look at whether the lifestyle block is a mixed-use asset or subject to residential loss ring-fencing and what that means on sale.

We will work through the GST rules to help decide when a lifestyle block is a taxable activity and when it is not, and how the change of use vs cessation of activity rules may apply at the time of sale.

The course will use practical examples to highlight the issues and the considerations.

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

• Understand how the general income tax rules apply to the sale of lifestyle blocks, taking into account the land tax rules.
• Understand whether a lifestyle block is subject to bright-line and interest deductibility limitations and the implications of ring-fencing.
• Provide advice to clients on specific risks and benefits of GST registration when dealing with lifestyle blocks and how to manage GST outcomes on sale.

Suited to:

All levels

PRESENTER:

Daniel Gibbons, Partner, Findex/Crowe
Daniel is a Partner for Findex/Crowe in Queenstown. Daniel has been with Findex/Crowe for 15 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.