Question for Steve / Dave or any other Bean counter out there. We are in the proceeds of preparing the installment sales contract for our first wrap and our solicitor mentioned today that since we would be in the business of “trading Houses” we should be charging GST on the sale of the house to the wrapee, he thought that we would only have to pay GST on the margin eg. buy house for $40,000 sell for $50,000 = margin of $10,000 GST payable of $1,000.
Question 1. Do we have to charge GST on the sale of the house to the wrapee?
Q2 if so is this correct about paying gst only on the margin?
Q3. Our solicitor also mentioned that the wrapee’s solicitor would probably advice them against buying the house if the clause stating that GST is payable by the purchaser was in the contract. Do other people have a GST clause in their contract?
best regards,
Carolynne
Law is such an inexact science!
My solicitor says GST isn’t payable!!
My contracts do have a clause stating that if at any time in the future it is shown that GST should be payable, it will become payable by the purchaser. I explain to all my purchasers (as instructed by my solicitor) that they can either leave that clause in there, or they can choose to pay the expected GST amount up front and get it refunded at the end if it turns out not to be payable. Nobody has taken me up on that offer, they all prefer to leave it and worry about it “one day” if it is found to apply.Keep smiling
Felicity
Ohhh the joys of the simpler TAX SYSTEM……
cheers
wattoEdited by – [email protected] on 16/01/2003 10:39:14 PM
Thanks for your reply Felicity. [
]I thought I heard Steve say the same as you, only I couldn’t remember on what tape or CD I heard it on.
I will speak to our accountant today to get his opinion. Does anyone else do it differently[?][?]
Carolynne
Hey FW,
I couldn’t have said it better myself [
]Bye
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Carolyn
our advice has been that GST is not payable as we are dealing with residential real estate which is specifically excluded from the act relating to GST
the Bruce
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