Taxation of Land Transactions: Key Rules and Implications

Understanding how the land rules apply to land dealers, developers, subdividers, builders, and their associates has always been important. This is set to become increasingly so with the proposal to reduce the bright-line rules back to a 2-year test.

The effect of these provisions can mean that land is subject to income tax when it may not have been if disposed of by another person. There can also be significant impacts for associates. In some instances, that also means that the interest deduction limitation should not apply to them.

This webinar will consider practical examples to help you understand:

• What these taxing provisions are.
• How they apply.
• When a person might have a “land-related business” and whether this requires a certain number or frequency of property transactions.
• When a person might have a building business.
• What a “building improvement” is and how performing these improvements can affect the taxation of land.
• Impact for associates.
• When a person can no longer rely on a residential or main home exclusion because they have a “regular pattern” of buying and selling land.
• What will be the impact of the interest deductibility limitation (and what might change given proposed changes to the rules).

Suited to: Accountants, lawyers, and others providing professional services to the property industry.