It has long been the case that you must pay income tax if you originally purchased a property with the intention of on-sale. The problem for the IRD was that it is very difficult for the IRD to prove that this was a taxpayer’s intention for selling.
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From July, you may now be asked for information by your lawyer that previously you’ve only had to provide to banks and financial service providers. This could include verification of identity information and information about the source of funds. This may be frustrating for you (and us too), but bear with us because this is a legal requirement, not a firm-based decision. _______________________________
Check to see if land is potentially contaminated ... Since Regional Councils started to identify land that could be contaminated by chemicals or hazardous substances (called “Hazardous Land”) we have had instances where clients subdividing in areas of Tauranga that used to be orchards have had to undertake expensive soil testing and had specific conditions imposed in subdivision consents. Hazardous land uses include:
Problematic “P” trends have broadened to include unsuspected contamination in homes, whether by a tenant or former owner. It is becoming increasingly common to have residential sale and purchase agreements subject to a “P” residue test, or for this to be part of general due diligence. This has been particularly prevalent in the case of residential rental properties.