How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Chris The Lawyer Your Own Question

Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 18675
Experience:  32 years qualified as a lawyer; LLB, MMgt and FAMINZ.
Type Your New Zealand Law Question Here...
Chris The Lawyer is online now
A new question is answered every 9 seconds

Hello, It would be greatly appreciated if you could help us

Customer Question

Hello,
It would be greatly appreciated if you could help us out.
If you have an Unregistered for GST, Title block of grazing land of 5 Ha with no house, 2 Haysheds and you would like to sell it to your son.
a, Would you market value this land by adding GST? He will be buying it in an Unregistered Trust.
b, Also if no Land Agents are involved and it is a fair family sale, would you deduct Land Agent's fees normally from the Market Value?
Many thanks, XXXXX XXXXX XXXXX@XXXXXX.XXX.

Kind Regards,
Heather
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.

christhelawyer : HiWelcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear
christhelawyer : If you are not registered for GST then the value is not affected by including GST. So you sell at what ever the correct market value. However there are no rules about the price and you can sell to him at any price you want.
christhelawyer : the land agents fee would be a cost to the vendor, and also would have no effect on the market value.
christhelawyer : The correct market value may be important if you like
christhelawyer : to keep this at arms length, or you may be looking at the rest home subsidy.
christhelawyer : otherwise the price is what you and your son agree
Customer :

Thankyou for your reply Chris, this has nothing to do with Resthome Subsidy as we are 58 years of age.

Customer :

The question is you can only have one market value, so is that market value allowed to have GST in it or should it be subtracted. One Valuer believes it should be GST inclusive and our Lawyer thinks so too. Our Accountant and two Valuers say 'that only land under 2 Hecs and especially with houses on them have a market value GST Incl.

Customer :

They say land larger than 2 Hecs should not in this case have any talk of GST on.Which mean the 3 hecs left shouldn't have GST in the market Value or would the whole 5 Hec have no GST? If the valuation at present is $410,000.00 GST Incl. does our son pay this price or do we deduct GST of 15% off this figure.

Customer :

Thanking you.

christhelawyer : Is your son registered for GST?
christhelawyer : That is the main factor
christhelawyer : If he is not then GST is not a factor in the value.
christhelawyer : The status of the vendor and purchaser and whether they bought the land and sold the land with or without GST is also relevant.
christhelawyer : I will check in later when these issues have been clarified and I can then be more definite.
Customer :

Thanks Chris, I will have to wait until my husband comes back in to ask him some questions. I will be intouch thankyou

Customer :

Hi Chris,

Customer :

I have just talked to my husband and he said, the purchaser is Unregistered for GST and the vendor (which is our Trust)is Unregistered, so why should a Valuer value be able to value the property GST Incl. when he was advised the Vendor and Purchaser were both Unregistered for GST?If our son decided in years to come to grow a crop such as strawberries or kiwifruit and decided to Register for GST, could he then claim back the GSTwhen he Registers from the orginal price of the land? Thankyou very much.

christhelawyer : You must claim the GST at the time of purchase not later. So if neither of you are registered then this value should not include GST in my view. It should be the true market value.
Customer :

Thankyou Chris, but how do you get a true market value if the Valuers are told of all sales, generally in a GST incl. price and which they do their valuing from?So how do you get a true market value when we are not going on the open market and trying to do the fairest thing for our family? What is your interpretation when one Valuer values GST inclusive and the other Valuer Exclusive and we need to know the market value and they are both at $410,000, one $410k Incl and one $410k exclusive. What it the market value? Why wouldn't one be approximately $350k GST excl. and the other $410k incl. we find this very confusing. and only want to do the right thing. thanking you.

christhelawyer : In this context where vendor and purchaser are not GST registered, the value must be without taking GST into the figures. A value is in the end, what a willing seller and willing purchaser will pay. In a rural area, there will be well established figure per hectare for land depending on the condition and quality. If this land was sold on the market, and you were not registered for GST would you pay the higher or lower figure? The answer to that, is what the market value will be.
Customer :

Thankyou Chris, you have been most helpful, have a nice weekend. Bye Heather

christhelawyer : great, I hope this has been useful
Customer :

yes thanks very useful.

christhelawyer :

Ok, glad to help

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • LawNZ

    Other

    Satisfied Customers:

    31
    Trusted advisor to businesses and individuals on company, consumer, employment, IP, and trusts issues, among others.
< Last | Next >
  • /img/opt/shirt.png LawNZ's Avatar

    LawNZ

    Other

    Satisfied Customers:

    31
    Trusted advisor to businesses and individuals on company, consumer, employment, IP, and trusts issues, among others.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8413
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19912
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8180
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2131
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    108
    7+ years of experience handling various legal matters.
 
 
 

Related New Zealand Law Questions