I am currently purchasing an ex local council property ( which was formerly a local infant welfare centre)in partnership with another couple. The property was sold with GST written into the sales contract. The settlement is mid April. We are buying in the name of trusts as tenants in common.
My question is how to we best deal with the GST. Is it possible to have the GST removed or returned to us as we will be developing this property for residential purposes.
You are entitled to the GST back on the property as you have purchased it with a profit making intention so you pass the enterprise test and qualify to register for GST. The GST will be refunded in your June BAS. Of course you will have to charge GST on the sale but this is unavoidable anyway.
It will be the partnership of the two trust that will register for GST.
I have assumed that you are developing the property to sell residential property. If it is your intention to hold the properties as rental accommodation rather than resale at a profit then you will not be entitled to any of the GST back, nor would you need to register for GST.