Tax Considerations for the Real Estate Sector – All Parts (Webinar Series)

Please Note: This webinar series has been cancelled

This webinar series is aimed at what Real Estate Agents need to know. It is broken into four parts: Property Tax 101, Tax Considerations for Vendors, Tax Considerations for Purchasers, Personal Tax Obligations

It will cover the relevant taxation considerations that those working in the industry need to know.

The course is suitable to anyone involved in the property industry, including:

  • real estate agents,
  • property brokers,
  • property managers,
  • property valuers,
  • property owners/investors.

The series will include relevant real-life scenarios and will also take into account the impact of COVID-19 on the industry.

Real Estate: Part 1 – Property Tax 101

The series will begin with an introduction to the various income tax and GST considerations that apply to property sales, such as mixed-use assets for income tax purposes, loss ring-fencing, and GST treatment of land transactions involving commercial and/or short term accommodation.

Upon satisfactory completion of Part 1, you will be able to:

  • Understand the basics of income tax and how it pertains to property transactions, including an overview of:
    • General income tax and filing obligations for both resident and non-resident property owners and property transactions;
    • Consideration of costs that can be claimed, including interest deductions on loans and the distinction between revenue and
      capital for costs such as R&M, healthy homes improvements, leaky home repairs, and general renovations;
    • Impact of private use of assets and what adjustments are required;
    • An overview of the various taxation of land rules, including the bright-line rule for residential land sales;
    • An overview of the rules around the ring-fencing of rental losses;
    • An overview of the depreciation rules, including the reinstatement of commercial building depreciation;
    • Consideration of the new Loss Carry Back Rules in relation to property activities.
  • Understand the basics of GST as it pertains to property ownership and property transactions, including:
    • GST registration requirements and how this applies to different property activities;
    • Application of GST to different property transactions, including when a property can be zero-rated;
    • Overview of the adjustments that apply to property for a mix of taxable and non-taxable use, with a particular focus on key
      issues that apply due to COVID-19, including change in use of properties (including Airbnb to long-term residential).

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Real Estate: Part 2 – Tax Considerations for Vendors

In Part 2 of the series we will cover the various income tax and GST considerations that apply to vendors on the sale of property.

Upon satisfactory completion of Part 2, you will be able to understand…

  • in more detail how the sale of property can be subject to taxation in different situations, including:
    • property dealers
    • property developers
    • builders
    • one-off subdivisions/developments
    • bright-line rule
    • other taxation rules;
  • what potential exclusions might apply to the taxation of property;
  • other sale considerations, including valuation assigned to sale components, depreciation recovery outcomes and treatment of
    sale costs;
  • an overview of the Residential Land Withholding Tax Rules (RLWT);
  • the key considerations from a GST perspective on the sale of property, including the:
    • difference between zero-rated; standard-rate; exempt; and non-taxable transactions;d
    • impact of whether a transaction is “plus GST” and “incl of GST”;
    • GST considerations on sale, including undertaking final GST adjustments;
    • implications of long settlement periods;
    • impact on transactions when the GST status of the vendor or purchaser changes;
    • impact of changing use of an asset and deemed de-registration.

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Real Estate: Part 3 – Tax Considerations for Purchasers

In Part 3 of the series we will cover the various income tax and GST considerations that apply to purchasers when they acquire and own
property.

Upon satisfactory completion of Part 3, you will be able to understand…

  • the different income tax and filing obligations, including:
    • Income tax filing obligations
    • Ring-fencing of Rental Losses;
  • an overview of different taxation entities that can own property and implications of each for property ownership, including:
    • Individuals
    • Companies
    • Look through companies
    • Partnerships
    • Limited partnerships
    • Trusts;
  • assigning values in property transactions on purchase and why this is important;
  • an overview of tax residency rules and how owning a home in NZ impacts this;
  • the key considerations from a GST perspective on purchase, including:
    • Requirements to be GST registered;
    • Overview of the ongoing implications of being GST registered;
    • The impact of whether a transaction is “plus GST” and “incl of GST” for a purchaser;
    • Claiming GST on property purchases and how the IRD review such claims and overall taxable activity;
    • Impact on a transaction when the GST registration status of vendor or purchaser changes before settlement;
    • Registering for GST after settlement, including undertaking change of use adjustments;
    • Mixed-Use and Concurrent USE Adjustments – when there is a mixture of private and business use of a property.

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Real Estate: Part 4 – Personal Tax Obligations

In Part 4 of the series we will cover the various income tax and GST considerations that apply to Real Estate Agents and the impact this will have on other activities or assets.

Upon satisfactory completion of Part 4, you will be able to understand…

  • The different income tax and filing obligations, including:
    • Consideration of Independent Contractors vs employees;
    • Overview of how Withholding Tax regime and how it applies to agents;
    • Overview of provisional tax and options to best manage your obligations;
    • What costs can be claimed as part of activity;
    • What private use adjustments need to be considered on assets like motor vehicles and options for private use;
    • How the entertainment/sponsorship rules apply;
    • Consideration of home office claims;
    • Implications if an agent is paid a retainer, if new to industry or to assist during a COVID-19 downturn.
  • The key considerations from a GST perspective, including:
    • Requirements to be GST registered;
    • Overview of the ongoing obligations of being GST registered;
    • Consideration of accounting and returning GST;
    • Invoicing requirements;
    • Consideration of what costs can be claimed and what private use adjustments are relevant to agents;
    • Implication for other activities or asset, such as if an Agent operates an Airbnb from their personal home;
    • Implications of home office if GST registered.

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Total CPD Hours: 5 (1.25 per session)

PRESENTER

Daniel Gibbons, Associate Partner, Findex/Crowe

Daniel is an Associate Partner for Findex in Queenstown.  Daniel has been with Findex for 12 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.

  • Part 2: Tax Considerations for Vendors
    19 August 2020
    9:30 am - 10:45 am
  • Part 3: Tax Considerations for Purchasers
    2 September 2020
    9:30 am - 10:45 am
  • Part 4: Personal Scenarios
    9 September 2020
    9:30 am - 10:45 am

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