Taxation of Land Transactions: A Case Study - CISC8805 Unitec NZ

This case study provides advice to Tim Neil and Lacey Neil regarding the tax implications of three land transactions. The first transaction involves the purchase of land in 1985 for farming purposes and its subsequent transfer to trusts. The second transaction covers the subdivision of the land after its transfer to the trusts and the sale of some lots. The third transaction discusses a further proposed subdivision. The analysis considers relevant sections of the Income Tax Act 2007, including CB7, CB9, CB10, CB6, CB11, CB16, and CB17, and examines the applicability of these provisions to each transaction. The study concludes on the taxability of each transaction based on the intention of the parties, the timing of the transactions, and the relevant exemptions.