Credits

About /

Credits

Residential premises are not considered new if they have been rented out continuously for five years or more (unless they were held for sale and rent at the same time).

If residential premises are not new, the sale of the property after being rented out is input-taxed. If you have claimed GST credits on construction costs and related purchases of non-new premises, you will have to make adjustments that reverse these credits. This is because you are not entitled to GST credits for things purchased to make input-taxed supplies.

If you rent out the new premises while you are planning to sell it, you will need to adjust part of the GST credits you claimed. You must show you intend to sell the premises. Actively marketing the premises for sale is one way of showing this.