Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
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34<br />
IR 3 INDIVIDUAL RETURN GUIDE<br />
Income from the sale of land and/or buildings<br />
The profits are <strong>tax</strong>able if you bought a property for the purpose of reselling<br />
it or are in the business of buying and selling land and/or buildings.<br />
The profits may be <strong>tax</strong>able if you:<br />
––<br />
are a builder and improved a property before selling it<br />
––<br />
developed or subdivided land and sold sections<br />
––<br />
had a change of zoning on your property and sold it within ten years<br />
of buying it.<br />
Print the total profit in Box 23. Put the details of your <strong>income</strong> and<br />
expenses from these sales on a piece of paper and staple it to the top of<br />
page 3 of your <strong>return</strong>.<br />
Income from the sale of non-FIF shares or other property<br />
The profits are <strong>tax</strong>able if you bought:<br />
––<br />
and sold shares or other property as a business<br />
––<br />
shares or other property for the purpose of resale<br />
––<br />
shares or property to make a profit.<br />
This doesn’t apply to shares that are FIFs. Print the total profit in Box 23.<br />
Put the details of your <strong>income</strong> and expenses from these sales on a piece<br />
of paper and staple it to the top of page 3 of your <strong>return</strong>.<br />
Sale or disposal of assets<br />
If you sold or disposed of a depreciated asset for more than its adjusted<br />
<strong>tax</strong> value, call us or read our <strong>guide</strong>s Depreciation (IR 260), General<br />
depreciation rates (IR 265) or Historic depreciation rates (IR 267).<br />
Losses from the sale of land, buildings, shares or other<br />
property<br />
If you made a loss and can show that if you’d made a profit, it would have<br />
been <strong>tax</strong>able, you may be able to claim the loss as a deduction.<br />
Print the total in Box 23. Write the details of your <strong>income</strong> and expenses<br />
from these sales on a piece of paper and staple it to the top of page 3 of<br />
your <strong>return</strong>.<br />
Financial arrangements<br />
If you’re a party to a financial arrangement, you must account for <strong>income</strong><br />
from those arrangements on an accrual basis. Financial arrangements<br />
include government stock, futures contracts and deferred property<br />
settlements, excluding short-term agreements for sale and purchase of<br />
property.
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