Dealing with tax on your Sale and Purchase agreement.
When buying or selling a property, remember to get your Sale and Purchase Agreement checked by your lawyer AND your accountant before you sign it.
There is often confusion about how to deal with GST on a property transaction. ‘Sort of’ getting it right is not really an option – because the implications for the vendor and purchaser can be huge, depending on how wrong the agreement is.
It is also important to have correct values for items included in the sale eg dairy farm chattels, buildings, livestock.
This is especially relevant if you sell an asset for an amount greater than book value and depreciation has been claimed.
The excess is income and will be taxed. Sometimes this is unavoidable, but we can minimise the tax payable if possible.
Please contact us if we can assist you with any queries relating to sale and purchase of property.