GST and land sale

Discussion in 'Accounting & Tax' started by Devvvy, 9th Jun, 2022.

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  1. Devvvy

    Devvvy Well-Known Member

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    I bought a residential block.of land with intent to build home.
    I don't own any other property.
    Covid struck, building costs went up (original build quote quadrupled), could not afford it.
    So decision to sell land.

    Am I liable for GST on sale of this block of land?

    I do not use it as a business and it is not an investment. It was intended as a home.

    Currently renting. I need to buy a home but until this block.is sold am unable to.
     
    Devvvy, 9th Jun, 2022
    #1
  2. Mike A

    Mike A Well-Known Member

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    built a home to do what ? live in it ? rent it ? sell it ?
     
    Mike A, 9th Jun, 2022
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Not an accountant but as you didn't create the block of land nor did you build on it then I think it's just a normal sale with no GST but there would be CGT.
     
    Westminster, 9th Jun, 2022
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  4. Shazz@

    Shazz@ Well-Known Member

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    Sounds like a genuine change in circumstances, so it would be probably just be up for CGT, but seek specific tax advice.
     
    Shazz@, 9th Jun, 2022
    #4
  5. Paul@PAS

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

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    Only personal tax advice could determine this.
     
    Paul@PAS, 9th Jun, 2022
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  6. Mike A

    Mike A Well-Known Member

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    you can still be subject to GST on vacant land even if you did nothing to it. it might be a profit from an isolated transaction but his intentions will determine that.
     
    Mike A, 10th Jun, 2022
    #6
    Westminster likes this.