Tax Aspects of Property Transactions – recorded lunchtime online conference

Hear from the experts at this online lunchtime conference. You can watch it on your computer or on your portable electronic device from anywhere.

The conference will be based on our highly successful video webinar technology: there'll be a chairperson and presentations.

One registration can be shared by colleagues within the same firm utilising the same login.

THE PROGRAM

Session 1: Property Developments and Mere Realisation: The Commissioner Changes His Spots

The Commissioner has traditionally treated small-scale property developments as mere realisations of a capital asset. Recent activity indicates that the Commissioner has changed his views and wants to tax these developments on revenue account. So gird your loins for a fight. This session examines the following areas:

• The revenue and capital distinction implications for property developers:
  • Subdividing land held for a long period- when does the land cease to be on capital account?
  • What then happens – pre and post CGT assets?
  • What is an isolated profit-making transaction?
  • Am I carrying on a business of property development?
• The new aggressive stance by the Commissioner –correct at law?
• Small two lot subdivisions and mere realisation
• Strategies for persuading the Commissioner that you are really just realising a capital asset
• Recent private rulings

Session 2: The Vacant Land Measures – Is the Government Attacking Land Owners?

The vacant land measures in Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Act 2019 have been seen by some commentators as an attack on small land owners and mum and dad investors. The removal of tax deductions for holding costs associated with vacant land (e.g. rates, land tax or interest on a mortgage) from 1 July 2019 represents a significant financial cost for many small investors. This session examines the operation of the “new” rules and also identifies exemptions which may be available to clients:

• Overview of the “old” rules governing the deductibility of holding costs
  • FCT v Steele – Do I have a purpose of earning income?
• What is vacant land?
  • What is a substantial structure?
  • Vacant land and semi-completed residential property developments
• Who does the rules apply to?
  • Companies excluded
  • Primary producers and property developers excluded
  • What about agistment income?
  • Related parties using the land
  • Implications for investors purchasing off-the-plan
• Other exclusions/inclusions

Session 3: Property Transactions and GST: A Ticking Timebomb for Advisers?

Clients regularly undertake property transactions without giving much thought to the possible negative GST consequences of a transaction. Even though the GST regime has been in place since the 2000 income year, advisers themselves are still uncertain about the application of the various rules and concessions that may apply to a particular property transaction. This session aims to clarify some of the uncertainty and covers the following areas:

• Does my client’s property development venture constitute an enterprise for GST purposes (e.g. An adventure or concern in the nature of trade)?
• Analysis of the registration rules
• Analysis of concessions and interaction with practical scenarios (e.g. margin scheme, going concern)
• Change of use adjustments from taxable supply of new residential premises to input taxed supply of residential rent
• Examination of recent cases and rulings, including The Trustee for the Seabreeze Estate Unit Trust and Commissioner of Taxation [2019] AATA 1395