all persons mentioned below are New Zealand taxresidents unless otherwise stated. All taxpayers have...

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Accounting

all persons mentioned below are New Zealand taxresidents unless otherwise stated. All taxpayers have a 31 Marchbalance date.
QUESTION 1. Tobby has been buying and sellingresidential houses since 2010 and is regarded as a land dealer fortax purposes. Tobby also owns 20% and his daughter (who is 22 yearsold) owns 5% of Tobby Rentals Ltd (the balance of 75% is owned byhis close friend Fred), a company that invests in residentialrental investment properties. In January 2012, the company bought arental property. In December 2016, the company decided to sell therental property for a very good price. You are required to explainwhether the income from the sale of the property by Tobby RentalsLtd is taxable income under sections CB 6, CB 9 and CB 6A.
QUESTION 2. Kim is married to Bruce, a propertydeveloper. Kim is settlor and trustee of a trust, which owns allthe shares in Kim's family company, Guts Ltd. Guts Ltd recentlysold a rental property which was bought nine years ago. Is theincome derived by Guts Ltd assessable income under section CB 10?
QUESTION 3. Maryanne entered into a sale andpurchase agreement on 15 October 2015 to buy a property in Aucklandwith the intention of providing a home for herself and herchildren. When she eventually sells it, she hopes to make a gainand leave her children a legacy. The title of the property wasregistered in her name on 15 December 2015. However, in April 2017,she got a new job in Wellington and entered into an agreement tosell the property on 1 May 2017 to move closer to her new job.Property prices have risen, so Maryanne is able to sell the housefor much more than she paid for it. The title was registered in thebuyer’s name on 1 July 2017. You are required to explain whetherthe income from the sale of the property by Maryanne is assessableincome under sections CB 6 and CB 6A (show also which dates arerelevant in arriving at your decisions). She is not associated witha land developer/divider or dealer or builder.

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Q 1 As per section CB 6A if the residential land is disposed within 5 years from the date of acquisition the income is taxable under section CB 6A Section CB 6A apply only to residential land Tobby rentals Ltd deals in residential See Answer

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In: Accountingall persons mentioned below are New Zealand taxresidents unless otherwise stated. All taxpayers have a...all persons mentioned below are New Zealand taxresidents unless otherwise stated. All taxpayers have a 31 Marchbalance date.QUESTION 1. Tobby has been buying and sellingresidential houses since 2010 and is regarded as a land dealer fortax purposes. Tobby also owns 20% and his daughter (who is 22 yearsold) owns 5% of Tobby Rentals Ltd (the balance of 75% is owned byhis close friend Fred), a company that invests in residentialrental investment properties. In January 2012, the company bought arental property. In December 2016, the company decided to sell therental property for a very good price. You are required to explainwhether the income from the sale of the property by Tobby RentalsLtd is taxable income under sections CB 6, CB 9 and CB 6A. QUESTION 2. Kim is married to Bruce, a propertydeveloper. Kim is settlor and trustee of a trust, which owns allthe shares in Kim's family company, Guts Ltd. Guts Ltd recentlysold a rental property which was bought nine years ago. Is theincome derived by Guts Ltd assessable income under section CB 10?QUESTION 3. Maryanne entered into a sale andpurchase agreement on 15 October 2015 to buy a property in Aucklandwith the intention of providing a home for herself and herchildren. When she eventually sells it, she hopes to make a gainand leave her children a legacy. The title of the property wasregistered in her name on 15 December 2015. However, in April 2017,she got a new job in Wellington and entered into an agreement tosell the property on 1 May 2017 to move closer to her new job.Property prices have risen, so Maryanne is able to sell the housefor much more than she paid for it. The title was registered in thebuyer’s name on 1 July 2017. You are required to explain whetherthe income from the sale of the property by Maryanne is assessableincome under sections CB 6 and CB 6A (show also which dates arerelevant in arriving at your decisions). She is not associated witha land developer/divider or dealer or builder.