Dodging the Tax Traps and Pitfalls in Property Development Planning – recorded lunchtime online conference

CORDED

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: Tax Traps for Amateur Developers

Average “mum and dad” investors are dabbling more and more in the property development space without being aware of the numerous tax traps and pitfalls. This session aims to inform accountants and advisers of the various tax issues their clients need to be aware of when they undertake a property development venture. The following areas will be discussed:

• The capital/revenue distinction – does the property development transaction constitute a mere realisation of a capital asset or is it a profit-making enterprise or business?
• Analysis of various practical scenarios (e.g. small scale property subdivisions, joint ventures with developers)
• Managing a dispute with the Commissioner (e.g. what documentary evidence is required to support your client’s position)
• Analysis of the Commissioner’s guidance on property development transactions
• Examination of recent cases (e.g. Doyle v FCT [2020] AATA 345)

Session 2: Tax Consequences of Partitioning

As small-scale subdivisions become a more popular way of entering the property market, partitioning is becoming a common issue that advisers need to be across. Where a block of land is partitioned pursuant to an agreement between the owners, what are the tax issues that need to be addressed? This session explores the steps that result in a partition and their tax implications, including:

• What is the difference between a partition and a subdivision?
• When should you enter into the partition agreement?
• Does subdivision trigger a CGT event?
• CGT rollover availability in property partition
• Stamp duty implications on partitioning
• What methods can be used to apportion the cost base between the blocks?

Session 3: GST and Property Development Intensive

The impact of GST remains front of mind for property developers. This session provides a practical in-depth look at the impact of development structures on GST consequences, including:

• Developing a property in family trust with intention to sell some:
  • What input tax credits can be claimed
  • What GST should be charged
  • Will the margin scheme be available?
  • Dealing with adjustments events
  • Completing the BAS return for reduced ITCs – a walkthrough
• Options for selling the family farm and their GST implications:
  • Sell as is
  • Enter into joint venture with developer
  • Put in some infrastructure and rezoning and then sell blocks
  • Complete development and sell to end buyers