Taxation of Land Transactions

Whether you are a buyer with plans for land or a seller wanting to know if you have to pay tax on the sale, James can give you the advice you need promptly and accurately.

The taxation of land transactions now affects virtually ever property owner thanks to the Brightline test in s CB 6A of the ITA. That provision means that there is effectively a capital gains tax on certain land transactions. Additionally, a new dynamic has developed whereby friends and couples are combining together to buy real estate. That is being made necessary by the continued growth in property prices. However, it creates legal issues that need to be worked through prior to purchase.

For example, how should you own the land, what are the effects of tainting if your friends or family members are engaged in particular dealings with properties. 

There are also complex GST rules concerning land. Inland Revenue is ramping up their policing of this area, and with the compulsory reporting of land transactions by solicitors, they are not missing things like in the past. James advises both those buying land who want to know the tax outcomes if they proceed with their plans and to sellers wanting to know if their sale will be subject to tax.

Why get James involved?

James is highly experienced in advising on the tax implications of land transactions, giving seminars for the Law Society and having written the section on the taxation of land transactions for the advanced tax paper for the Australia and New Zealand Institute of chartered accountants.

Barristers have legal privilege, so you can discuss your land plans with a barrister and obtain advice as to what the tax treatment will be without it being seen by Inland Revenue.