Property Alert update

nzThe first of October is only days away and (apart from the usual pinch-and-a-punch) things are about to get a whole lot uglier if you buy and sell property regularly. We won’t bore you with the new legislation, which is mind bending and best left to Chartered Accountants, but practically speaking there’s a couple of smart things worth knowing:

Does your Trust have an IRD number?
If your Trust sells or buys property (even the family home) it can no longer get away without an IRD number. Apply now and don’t leave it until settlement day because it can take the IRD centuries to issue one (which could mean paying penalty interest every day settlement’s delayed).

Should you settle before 1 October 2015?
If you’re buying a property in the near future and can settle before the law changes, on 1 October 2015, it may be worthwhile especially if there’s even the slightest possibility that you’ll sell within two years and it’s not your family home.  This would be smart if, for example, you’re planning to buy a holiday home soon.  You may not plan to sell it but what if you get sick, lose your job or divorce and are forced to sell up.  Why pay tax unnecessarily?

Want to know more?
See our previous article: Taxing property gains

 

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