November 15, 2017 7:35 am
Those selling property as part of a business sale may be eligible for the margin scheme.
The margin scheme is a way of working out the GST you must pay on the property that you are selling as part of your business. The scheme is only applicable if the sale of a property is taxable.
The GST on property sales is generally equal to one-eleventh of the sale price. If the margin scheme is used, the GST is calculated on the difference between the sale price and your purchase price of the property (or the property’s value on 1 July 2000 if it was acquired before that date).
To meet the eligibility requirements you need to be registered for GST or required to be registered for GST.
Contact our office to check your eligibility for the margin scheme when selling property as the application of GST to property-related transactions can be quite complex.
Categorised in: tax