buying commercial

Discussion in 'Accounting & Tax' started by Fernfurn, 10th Jan, 2022.

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  1. Fernfurn

    Fernfurn Well-Known Member

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    If you buy a commercial premises in NSW, thereby paying 10% gst, do you still have to pay stamp duty? Would the gst and stamp duty be tax claimable?
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    What entity is buying?

    The Y-man
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Why would you be getting an exemption from stamp duty (state tax)?

    Why would you be paying GST (assuming that you are GST registered & buying a going concern)?
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The GST payment may be creditable IN SOME INSTANCES hence its not part of the costbase. If its not creditable (eg under margin scheme) then it will be a element of the costbase. Is there a tax invoice ? If its acquisition on going concern then there isnt any GST. Duty is a seperate transfer tax and will be a element of the costbase. Acquisitions costs arent "claimable". These should all be issues your tax adviser has already given advice on.
     
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  5. Fernfurn

    Fernfurn Well-Known Member

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    I would only be buying the premises, not the business, but the ad said plus gst.
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    This is common. IF you and the vendor can use the going concern basis the GST may be exluded from the contract. This is normally where the vendor has a existing lease and you are acqusiring the premises with the lease. However if you are acquisiring for own use GC isnt usually available
     
  7. Never giveup

    Never giveup Well-Known Member

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    Do you use Real Commercial to find potential CIP or you google it and use various websites ?
     

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