Selling the farm? Identify the GST consequences first
With buoyant property prices, and lots of residential subdivisions, we are seeing plenty of sales of farmland and ex-farmland.
Care needs to be taken to understand the GST consequences, as the GST cost can affect the overall net proceeds for the seller. For a buyer interested in developing the land, they will want to know whether they can apply the GST margin scheme for sales of their developed stock.
In this webinar, partner Fletch Heinemann will take a deep dive into some important GST considerations, with case studies featuring Haibo, the chocolate Labrador.
After this webinar, you will be able to identify:
- What are the GST consequences when a farming business stops?
- When must a landowner cancel their GST registration?
- When will a landowner make a taxable supply of ex-farmland?
- By contrast, when will a supply of farmland be GST-free?
- When does a supply of a property have to be apportioned between taxable, GST free and input taxed components?
- What should a buyer check, before they buy a property, to determine whether they can apply the GST margin scheme to their sales of developed stock?
- What GST clauses in contracts should advisers look out for?