paying back gst

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2 years 2 months ago #551007 by cowstails
paying back gst was created by cowstails
afternoon. first time poster here and asking a question on behalf. how would u know how much gst to PAY BACK if you sold a 10 acre block with a main house and a minor dwelling on. google is a nightmare and i see lots of things about buyer beware about becoming gst registered when buying a property , but cant find out how , or even if its possible for the average person to calculate without speaking to a lawyer.
thanks heaps.

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2 years 2 months ago #551010 by linrae
Replied by linrae on topic paying back gst
From my experience and my partner was Law Firm accountant ,
Were you GST registered when you brought property,Has GST been claimed on expenses etc relating to property
We were never GST registered have sold our property never claimed GST back at any time so have just sold as it stands No GST involvement needed

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2 years 2 months ago #551012 by Stikkibeek
Replied by Stikkibeek on topic paying back gst
If you are GST registered and you buy a property with +GST, you can claim it all back. (15%) of the purchase price. The difficulty arises down the track if you wish to sell again. Then you will be required to pay the Govt the GST on the sale amount, even if you have made a capital gain, when you will then pay more back that you claimed originally. The new owner will have the input. Our accountant advised us as small farmers, not to GST register. She does claim tax back on our behalf as a personal tax rebate which is not much but it all helps.

Did you know, that what you thought I said, was not what I meant :S

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2 years 2 months ago #551016 by LongRidge
Replied by LongRidge on topic paying back gst
It's a bit more complex than that, but not much. The residence and the 1 acre (o.4 hectares) of land that it sits on, or the lesser area if the fences are such that the house does not have the curtilage 1 acre around it), does not have GST on it, unless .... the house and gardens are an integral part of a GST registered business such as a lease. So the value of that needs to be taken out from the total value of the property. For example, if the house and land is about $400k (you can get a good guess by viewing price of similar houses in the local residential area to you) and the total value is say $600K, then the GST part of the property is on the $200k so $30000. So for this example if the advertisement said $600k plus GST the total price would be $630K. If you did not get GST registered you would pay $630k. But .... the seller wants to pay as little GST back, so he is going to try to persuade the valuer that the house is worth $500K and the land $100kso he only has to pay back $15K. Which is great if you are not going to GST register. But if you are going to GST register you want the house to be $300k and the land to be $300k so the price is $645k and you claim back $45k. The huge problem that those of us who have registered for GST is that we did it at a lower rate, but the rate of GST will never go down to what we claimed on..

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2 years 2 months ago #551019 by linrae
Replied by linrae on topic paying back gst
Surely the person you are asking for on Behalf knows if they are and were GST registered when they brought property.
If not No GST to pay get them to look at purchase records explained simply on the settlement statement

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2 years 2 months ago #551027 by cowstails
Replied by cowstails on topic paying back gst
morning. of course they know if they are registered. they are and they do claim back for the farm things, but my question was if they SOLD the block , how do they find out how much gst they have to pay back. the person wants to get out of being gst registered and only started off when her husband had a contracting business. when he died as far as im concerend lawyer/accountant should have advised to deregister, but said person probably doesnt have the money to pay it back, as it could be several hundred thousand. they would rather stay and NOT be gst registered anymore, but without going to a lawyer wouldnt know how to even work out how much they are looking at to pay back.

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2 years 2 months ago #551029 by linrae
Replied by linrae on topic paying back gst
For what you say they will need advice from accountants to sort this one if husbands business tied up with land tax claim back as well as his business

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2 years 2 months ago #551030 by cowstails
Replied by cowstails on topic paying back gst
yep. a bloody nightmare. thats why lady has just said she may as well carry on and claim for her few things, and then let the nightmare start if she dies or has to go into home and family get landed with the gst debt. i just thought someone must know a way of calculating if she sold right here, right now how much it would cost her to pay it back, or if she wanted to stay, but pay it back right here, right now.

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2 years 2 months ago - 2 years 2 months ago #551033 by max2
Replied by max2 on topic paying back gst
kiwitax.co.nz/closing-business-gst-claimed-assets-kept/

www.classic.ird.govt.nz/help/demo/closing-bus-vid/

similar links if you google paying back GST. She can always send them a secure message on line too. Mind you I would ask several times as you can receive different advice from IRD.
Last edit: 2 years 2 months ago by max2.

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2 years 2 months ago #551035 by linrae
Replied by linrae on topic paying back gst
Spending 1k now before any more claims may save a lot in the future.
Surely her husbands business had an accountant
The following user(s) said Thank You: max2

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2 years 2 months ago #551041 by LongRidge
Replied by LongRidge on topic paying back gst
Hi cowstails. Was my explanation clear enough? If not, ask the next question :-).

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2 years 2 months ago #551047 by cowstails
Replied by cowstails on topic paying back gst
good morning. ah yep, clear as mud, lol. i read it again but it was more about claiming it back, wasnt it?? oh i dunno. so lets just do a round figure and say the property is worth a million, owner has owned it for 30 years, um, what else do u need to know, and well thats all i know. so we still dont know how to calculate how much money they would have to pay back. anyway, its all good. maybe they will sit down and get their lawyer/accountant , whatever to work it out and see how many days it takes them, then they WILL need a long to pay the sharks.

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2 years 2 months ago - 2 years 2 months ago #551048 by cowstails
Replied by cowstails on topic paying back gst
morning. i think if they could get it for 1 k that would be great. but , *shudders*, i doubt it.

sorry, still new to this site and i dont know how to get MY reply underneath a quoted reply. sorry if i havnt quoted the right person.: and why arnt my smily faces working. i just get a word instead of a icon, lol.
Last edit: 2 years 2 months ago by cowstails. Reason: wanted to quote someone but dont know how to do it.

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2 years 2 months ago #551049 by linrae
Replied by linrae on topic paying back gst
From reply u have got LongRidge looks like they only want a Definitive answer .
Wont get it as there are a lot of different angles to what he/her/they are seeking

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2 years 2 months ago #551051 by max2
Replied by max2 on topic paying back gst
It's sort of like ''asking Karin on facebook''. Your friend needs a professional assessment if the IRD links and information isn't clear enough for the situation.

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