Part a Joshua is a New Zealand citizen and in 2016 he went to India to work
Question:
Part a
Joshua is a New Zealand citizen and in 2016 he went to India to work there. He has never returned to New Zealand since he left. Two years ago he purchased a residential rental property in Hillcrest Hamilton New Zealand for $930,000. In July 2022, Joshua signed a contract to sell the property for $1,200,000. Joshua has a mortgage of $430,000 on the property and outstanding rates of $2,800. The purchaser paid Joshua a deposit of $100,000 before settlement. Determine the Resident Land Withholding Tax (RLWT) payable by Joshua. Show all workings.
Part b
Kelly purchased a block of land in January 2012 for $150,000. She sells the land in August 2019 for $1,000,000. Although some of the increase in land value is a result of capital gain, Council valuations issued for each year suggest that at least 20% of the increase in value arises from zoning changes made to the district plan in 2018. Determine the taxable Income that arises for Kelly from the sale of the land. Show all workings.
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young