Announcements
Have you sold crypto, shares or property? Our new capital gains tax guide has info about cost bases, calculations & more! Still got questions? Ask the Community!

ATO Community

Re: GST on sale of a commercial property

Initiate

Views 151

Replies 2

Wondering if anyone can help with the sale of a commercial property. The original purchase was in 2006 as a going concern, commercial premises - cafe. The owners closed the business in 2012 and deregistered for GST as they were not trading and their turnover was below $75,000 They now have an offer to sell the property, but are not registered for GST, so does there need to be GST in the sale price? I realise they can not sell it as a going concern, but they have also not claimed any input credits for this property for almost 10 years. Any help would be appreciated.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 1

Wondering if anyone can help with the sale of a commercial property. The original purchase was in 2006 as a going concern, commercial premises - cafe. The owners closed the business in 2012 and deregistered for GST as they were not trading and their turnover was below $75,000 They now have an offer to sell the property, but are not registered for GST, so does there need to be GST in the sale price? I realise they can not sell it as a going concern, but they have also not claimed any input credits for this property for almost 10 years. Any help would be appreciated.

 

As long as the property cost less than $ 500K, and the adjustment periods were calculated correctly,

GST deregistration should not have resulted in a GST adjustment in 2012.

 

Now, they are not registered for GST, and not required to be (not trading in land.)

So, they are just selling without GST  -  Going concen conditions not needed.

 

Table A: Assets not used for business financePurchase or importation value (less GST)Number of adjustment periods for assets

$1,001 to $5,000

2

$5,001 to $499,999

5

$500,000 or more

10

2 REPLIES 2

Most helpful response

Taxicorn Registered Tax Practitioner

Replies 1

Wondering if anyone can help with the sale of a commercial property. The original purchase was in 2006 as a going concern, commercial premises - cafe. The owners closed the business in 2012 and deregistered for GST as they were not trading and their turnover was below $75,000 They now have an offer to sell the property, but are not registered for GST, so does there need to be GST in the sale price? I realise they can not sell it as a going concern, but they have also not claimed any input credits for this property for almost 10 years. Any help would be appreciated.

 

As long as the property cost less than $ 500K, and the adjustment periods were calculated correctly,

GST deregistration should not have resulted in a GST adjustment in 2012.

 

Now, they are not registered for GST, and not required to be (not trading in land.)

So, they are just selling without GST  -  Going concen conditions not needed.

 

Table A: Assets not used for business financePurchase or importation value (less GST)Number of adjustment periods for assets

$1,001 to $5,000

2

$5,001 to $499,999

5

$500,000 or more

10

Initiate

Replies 0

Thank you so much, really appreciate your help with this.