Michael is as a self-employed builder and has operated his business in Christchurch for over 25...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Michael is as a self-employed builder and has operated his business in Christchurch for over 25 years. 13 years ago he purchased a block of 4 flats which were built on one title. Last year Michael built 4 garages on the property for each of the tenants to park their cars. He also built a garden shed for the tenants to store their lawn mower and gardening tools. Michael has been approached by a tenant wanting to purchase the block of flats. After much consideration, Michael realises that it is a good offer and agree to sell. Required: With reference to relevant legislation advise Michael whether the gain arising from the sale of the block of flats would be taxable under the land provisions and whether any exemptions would apply. Michael is as a self-employed builder and has operated his business in Christchurch for over 25 years. 13 years ago he purchased a block of 4 flats which were built on one title. Last year Michael built 4 garages on the property for each of the tenants to park their cars. He also built a garden shed for the tenants to store their lawn mower and gardening tools. Michael has been approached by a tenant wanting to purchase the block of flats. After much consideration, Michael realises that it is a good offer and agree to sell. Required: With reference to relevant legislation advise Michael whether the gain arising from the sale of the block of flats would be taxable under the land provisions and whether any exemptions would apply.
Expert Answer:
Answer rating: 100% (QA)
Tax Liability for Michaels Flat Sale in New Zealand Based on the information provided heres an analysis of Michaels potential tax liability and available exemptions in New Zealand Legislation Income T... View the full answer
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these law questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Consider n x n real matrices A satisfying A = A = A-. (a) When n = 2, determine all such matrices. (b) Assuming that -1 is not an eigenvalue of A, determine all such nxn matrices.
-
Provide at least three situations where you feel women are treated differently in negotiations. You might want to use personal situation involving you or a significant other.
-
Indicate whether the following activities should be classified as business, investment, or personal. a. Kaitlin knits and crochets and sells her items at her church. She does not keep an inventory...
-
Conway, Inc., has developed and is selling artificial hips. Its chief engineer has discovered that, upon extensive use, the artificial hip may leach metal into the patients bloodstream. This is not...
-
Agent Blaze uses flexible budgets that are based on the following data: Sales commissions . . . . . . . . . . . . . . . . . 8% of sales Advertising expense . . . . . . . . . . . . . . . . 21% of...
-
1. A planet is revolving around the sun in an elliptical orbit. The mass of planet is m, angular momentum of planet about sun is L, and length of semi major axis is a and eccentricity is e. Time...
-
On 1 January 20x1, Delphi Company issued 4% convertible bonds with a face value of $10,000,000 at par. The bond matured on 31 December 20x5. The bond was convertible into ordinary shares of Delphi...
-
Calculate the payoffs of each branch of the decision tree given below. In the chance node of the decision tree shown in the previous question, what is the probability of the "Medium Revenue" branch?...
-
Calculate the pretax yield(yp), after tax yield implied by the potentially-flawed formula(ya), after-tax yield assuming capital gains are only taxed at maturity and coupon payments are taxed...
-
Are "unconditional promises to give" required to be recognized as liabilities? 18. What is the recognition threshold for recording a gain contingency? In an internal use software project, what are...
-
If A and B are sets, show that AU (ANB) = A by (a) showing each side is a subset of the other side. (b) membership table.
-
Tomato plant can grow by only utilizing the available soil and rain sources. However, with a desired amount of irrigation and fertilization, tomato harvest can be maximized. Question 1: a) Without...
-
Costco Wholesale has annual turns of 11.53. The average cost of each unit is $158.1 and their holding cost is 57%. What is the average inventory cost per unit for Costco Wholesale? Note: Round your...
-
Suppose in addition to the stock for the bonds Ernie received additional stock worth $500 for accrued interest on the bonds at the time of the exchange. How much if any income does Ernie report with...
-
What is taxable income, and what is the formula for determining taxable income?
-
You, a CA, have recently accepted a job at the accounting firm of Cat, Scan, & Partners, as a manager, and have been assigned the audit of Vision Clothing Inc. (VCI). The partner in charge had been...
-
On January 1, Year 1, Green Inc. purchased 100% of the common shares of Mansford Corp. for $335,000. Greens balance sheet data on this date just prior to this acquisition were as follows: The balance...
-
A parent company's 75%-owned subsidiary declared and paid a dividend totalling $10,000. How would the parent company record this dividend under the equity method? under the cost method?
-
Which of the following statements best describes corporate governance with respect to fraud? 1. Auditors are primarily responsible for the detection of fraud, the Board of Directors for the...
-
Which of the following is not a reason that the prevention and detection of fraud resulting from management override and collusion presents a significant challenge for the antifraud community? 1....
-
Which of the following is not an inherent part of Statement on Auditing Standards, No. 99/113? 1. Greater scrutiny of the chief executive and chief financial officers personal financial condition 2....
Study smarter with the SolutionInn App