Notify us of your purchase price allocation

Income tax Dates

NOV 30

AIM instalments are due if you file GST monthly and have a March balance date.
JAN 15

AIM instalments are due if you have a March balance date.
JAN 15

Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.

All Income tax dates

If you're making a notification when the buyer and seller do not agree on how the sale price should be allocated, you can notify us of your purchase price allocation in myIR or by post.

Make sure that the allocation between the asset classes is very clear.

For example, if the mixed assets include land, a commercial building and fit-out, do not allocate amounts only to ‘land’ and ‘improvements’.

Instead, separately identify:

land (property where sale/disposal does not give rise to assessable income)
commercial building (buildings that are depreciable property)
fit-out (depreciable property that is not a building).

Before you start

You will need the buyer and seller’s:

names
IRD numbers
contact details.

You will also need the:

date of agreement to the transaction
settlement date, and if different the date ownership changed
total consideration, including the value of any liabilities the buyer takes over
a statement that the amounts have been allocated in accordance with section GC 21
amount allocated to each asset class of property sold.

Send us a message in myIR

The easiest way to notify us is using myIR, in a message.

go to 'I want to...'
go to 'Communicating with IR'
select 'INC'.

Include the details

Include in your message:

your details from ‘Before you start’
the phrase ‘Purchase Price Allocation’ in the subject line.

You may wish to provide supporting documents such as the sale and purchase agreement, an independent valuation report and the notification provided to the other party.

Log into myIR

Other ways to do this

Include the above information in writing and post it to us at:

Inland Revenue
PO Box 39090
Wellington Mail Centre
Lower Hutt, 5045

What happens next

We may acknowledge that we have received your notification and if we need to we will ask for more information.

When you are ready, file your return based on the notified allocation. We may review the return and transaction as part of our normal compliance activity.

If your notification is late, we may take it into account when determining an allocation, but we are not required to adopt it.