GRA Blogs

Articles by The Professional Trustee Team

Buying and selling property through trusts

AUTHOR: The Professional Trustee Team

POSTED: 08 September 2015

Most people are aware that from 1 October 2015, residential property (with some exceptions) that is bought and sold within a two-year period will attract tax payable on capital gains made. This rule will apply to equally to individuals, companies and trusts.

If a property has been owned for more than two years by a trust, or if the property is your main home, this new rule will not apply. Solicitors, however, are going to have to file a report with Land Information New Zealand in order to actually settle the transaction.

This means that if a trust is going to buy or sell a property after 1 October 2015, the trust is going to need an IRD number. Accordingly, if you do not know the trust's IRD number and the trust is intending to buy/sell a residential property, please let us know. This will enable us to provide you and your solicitor with the trust's IRD number or if necessary, make an application on behalf of the trust for an IRD number.

A word to the wise: don't leave this to the last minute. If the IRD are inundated with requests, they may not be able to issue an IRD number immediately, which could delay settlement.

Request a Meeting

The Professional Trustee Team

09 522-7955

[email protected]

© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Comments

Testimonials

To whom it may concern: The Corporate Trustee team at Gilligan Rowe and Associates have been our Professional Trustee for our family trust and trading trust since May 2005. From the initial advice during the designing and creation of our trust structures through to the day to day operation of the entities, the support and guidance we have had from the Corporate Trustee team has been second to none. As a business owner and operator, I need to have reliable, efficient, proactive and knowledgeable people as part of our business team and Gilligan Rowe and Associates Trustee services tick the boxes in all of these criteria. I have no hesitation in commending and recommending Gilligan Rowe and Associates Trustee Services team to anyone who requires professional and competent guidance in the safe operation of their trust and in turn secure protection of their assets. - RNT

We can help

Here's how

Investing in residential property?

Put this at the top of your reading list.

If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.

Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.