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When buying rural land there are a number of key issues which need to be
determined. Some of them are industry specific.
Those which concern rural land generally include giving consideration to
what entity should buy the property, should it be a trust, company,
partnership or an individual. Specific ownership structures are better
suited to certain ownership situations such as where there are multiple
owners, in which case a company may be the most beneficial ownership
structure.
It is important in almost all rural transactions that the purchase price
is divided into categories of land, buildings, chattels, trees and any
other improvements that are included in the sale. The purpose of this is
to mark out for income tax purposes both those assets which are
depreciable and those that are subject to GST.
There are a number of exempt supplies in terms of GST which should be
recorded in the agreement and these include all the residential
dwellings and chattels, and shares sold with the farming business.
It is standard in most agreements to have a good farming practice
clause.
Specific
Issues for these Sectors:
Dairying
Drystock
Forestry
Horticulture
Equine Industry
Overseas Purchasers of New Zealand Land
Please refer to our
disclaimer.
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