APIA Blog

RSS Feed

Is GST payable on all the properties held by a trading entity?

Tuesday, September 29, 2020
 

This week's question comes from long-time APIA member Mary M and the answer is kindly provided by Amanda Watt of Shortland Chartered Accountants. The answer is intended to be for general information only and not tax advice. 

We have a GST registered property entity set up initially for trading. If that entity is holding more than one property and not all of them are for trading, do we have to pay back the GST for all the properties?

You would need to be careful having a trading property in an entity with other properties, I can see potential issues for tainting the other properties. You are best to keep trading property and buy-and-hold properties in separate entities. If you bought a property for trading and changed your mind, GST is triggered on the market value of the property, but please note that there will still be income tax payable when this property is sold regardless.


Do you have any tenancy related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

 

 

 

Recent Posts


Tags

twg report mindset Investor story heating investor anz partners investment strategy gluckman report Level 4 return speculator clnz unitary plan tenant first home buying maintenance Standards New Zealand renovation Holler management property cycle rta auckland council tenancy issues smoke alarm kiwibuild anti-social behaviour trust advice tenancy services positive cash flow income short-term rental ventilation property management watercare wins letting initio How to warren buffett extractor fan business property value debt enforcement building Tribunal case study buying rules election 2017 house prices HHS Property (Relationships) Act Must knows reserve bank TCIT Market report principal and interest lvr legal re agent heater CCC fixed-term tenancy beginner investor winz privacy negotiation market mortgage capital gain housing affordability commerce commission data security Gluckman meth contamination Case study sale and purchase CoreLogic asbestos trademe meth rent auckland interest rates property maintenance Guest blog shower dome productivity warm up new zealand tenancy tribunal wealth creation buyer's agent scotney williams Jeff Bezos damage RBNZ airbnb rent arrears cat HSWA worksafe cgt trespass Q&A yield election2020 boarding house covid-19 letting fee rental market barfoot and thompson cash-flow rtaa2020 termination property bad tenant rent increase Question and answer Must know housing bubble government will relationship DTI education LIM parry v inglis sublease RTAA 2019 buying Editor's Choice subdivision sale and purchas bond minor dwelling HHGA market rent opes partners Kris Pedersen Mortgages and Insurance rental wof finance banking holiday house equity personal growth robert kiyosaki structure ring-fencing property apprentice skill shortage insurance bond form ask an expert ird off the plan water bill tax development Sponsored post ocr television khh interest only p lab insulation Investment tip financial advisers act Landlording landlord recycling equity nzpif early termination rta reform inspection

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited