What everyone selling a property valued at $750k or more needs to know

Every vendor selling a property needs to prove that they are a resident of Australia for tax purposes unless they are happy for the purchaser to withhold a 12.5% withholding tax. From 1 July 2017, every individual selling a property with a sale value of $750,000 or more is affected.

To prove you are a resident, you can apply online to the Tax Commissioner for a clearance certificate which will remain valid for 12 months.

Properties under $750,000 are excluded from the rules. This exclusion can apply to residential dwellings, commercial premises, vacant land, strata title units, easements and leasehold interests as long as they have a market value of less than $750,000. If the parties are dealing at arm’s length, the actual purchase price is assumed to be the market value unless the purchase price is artificially contrived

…To find out more about the current situation that you are in or inquire into any possible cases that you think you might be involved in… please come and talk to Tax Ideas Accountants & Advisershttps://taxideas.com.au/booking/

Tel: (02) 8318 1545

Posted in News & Events, Tax Updates.