Most people are aware that from 1 October 2015, residential property (with some exceptions) that is bought and sold within a two year period will attract tax payable on capital gains made. This rule will apply to equally to individuals, companies and Trusts.
If a property has been owned for more than two years by a Trust, or if the property is your main home, this new rule will not apply. Solicitor, however, are going to have to file a report with Land Information New Zealand in order to actually settle the transaction.
This means that if a Trust is going to buy or sell a property after 1 October 2015, the Trust is going to need an IRD Number. Accordingly, if you do not know the Trust's IRD Number and the Trust is intending to buy/sell a residential property, please let us know. This will enable us to provide you and your solicitor with the Trust's IRD Number or if necessary, make an application on behalf of the Trust for an IRD Number.
A word to the wise: don't leave this to the last minute as if the IRD are inundated with requests, they may not be able to issue an IRD Number immediately which could delay settlement.
Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.
Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
The Property School presenters were all excellent & a wealth of knowledge in their specialty.
- Robert, June 2018
Meet with one of our senior property consultants to discuss your long-term plans for property investment and formulate a strategy for achieving them.
Request a Meeting
Events and courses
We offer both online and in-classroom education to help you move forward with your property investing.
Property Investment & Education seminar - market commentary and introduction to property investment strategies that are effective in the current environment. This free event is available on demand online, and from time to time in the GRA offices.
Wealth Suite is a powerful online learning, analysis, planning and forecasting resource. There are four key components, and you can choose to use one, some or all of them.
• Cash flow analysis for home, property and business • Overview of total equity, debt and market value of assets • Analysis of home expenses and income
• Set retirement goals. • Analyse when you will be able to retire based on your current path. • Input 'what if' scenarios and see how they impact when you will reach your goals (e.g. what if I buy two investment properties in the next five years?)
Property analysis calculators for current and future investments, including:
• Trade (flip) • Buy-to-hold • Subdivision • Land banking • Houses of multiple occupancy (HMOs). • Due diligence tool
Resources and Learning
Videos, articles and quizzes related to
property taxation, and asset protection
to further your education
Access to Property Guru and RPMZ, the analysis tools used by property professionals
(discounted rate negotiated by GRA and NZPM for our clients).
If you are new to Gilligan Rowe & Associates, we can offer you a free initial meeting with a senior consultant to review your current structure and discuss your accounting needs. In this meeting we will discuss ways to optimise tax and protect your assets so you are in the best position going forward.
Request a Meeting
NZ Property Mentors offer a variety of programmes to suit your needs and budget. All programmes include:
An introduction and essential skills educational day where you will define your personal property investment strategy.
A number of one-on-one mentoring hours, to use as you require them. All our mentors are experienced, full-time property investors.
Access to Wealth Suite (Wealth Tracker, Wealth Forecaster, Property Analyst and Resources), including research tools (RPNZ and Property Guru).