Associated with a property dealer, developer or builder (2024)

You may need to pay tax on a property sale if you’re associated with someone in the property business, even if you’re not personally a property dealer, developer or builder.

For example, if you hold shares in a property development company, the specific rules covering buying and selling in those situations may also apply to you.

Property dealers, developers and builders

Past associations

The same rules apply if you were associated with:

  • a property dealer or developer when the property was bought
  • a builder or person in the building business when improvements started on the property.

Who’s associated

You can be associated with a person, for example a family member, or with an organisation like a company or trust.

For property transactions, you’re only associated with your children if they’re under 20.

Read more about different types of associated persons and how they may apply to your property sale.

Associated persons

Get professional advice

Speak with a tax professional if you’re not sure if you, or someone you’re thinking of doing business with, is an associated person for tax purposes.

Our property tax guide

For more information and examples, read our guide Tax and your property transactions - IR361.

Questions and answers are also available in different language versions.

Associated with a property dealer, developer or builder (2024)

FAQs

What is the meaning of builder and developer? ›

Builder/Developer . Means the person who is legally empowered to construct or to execute work on a building unit, building or structure and / or land development, or where no person is empowered, the owner of the building unit, building or structure.

What is the meaning of property builder? ›

a person whose job involves buying and selling buildings and land, and arranging for new buildings to be built.

What is the role of a developer in construction? ›

Also known as a real estate or property developer, a construction developer may be an individual or a company. These professionals help procure land, finance projects and oversee a range of tasks related to transforming a plot of land into a property available for purchase.

What is the difference between a broker and a developer? ›

They facilitate transactions between landlords and tenants. Meanwhile, a developer sources opportunities, working with brokers, city leaders, government officials, landowners, architects, contractors and many more to understand the opportunity they are pursuing.

Is developer the same as builder? ›

As discussed, a developer buys a piece of land to construct residential or commercial real estate for sale to multiple individual customers or resellers. A major difference between a developer vs builder is that a builder does not get into purchasing land; he simply looks into the construction.

Can a developer also be a builder? ›

Side Note: Sometimes the developer is a builder also, so they must wear several hats. This is common in the Kansas City area. As a natural progression when a home builder's business grows it just makes sense to start developing you own subdivisions so you can have places to build homes that you control.

Who is called a builder? ›

A builder is a person whose job is to build or repair buildings. The builders have finished the roof. American English: building contractor /ˈbɪldɪŋ kənˌtræktər/

What is the difference between a builder and a contractor? ›

A contractor can hire many subcontractors to build a project. A builder is often a subcontractor that does the actual installation. Some large contracting firms have their own in-house installers or builders.

What is a house builder called? ›

someone who builds houses as a business. synonyms: home-builder, homebuilder, housebuilder. type of: builder, constructor.

What is the responsibility of a real estate developer? ›

What is a real estate developer? A real estate developer is a person or company that oversees all of the people involved in the building or renovating homes, offices, retail centers or industrial sites. These projects may convert vacant land or empty, neglected buildings into new businesses and homes.

What does a developer do all day? ›

Software developers work independently to create models and diagrams, write code, and test applications. They also collaborate with coders, software engineers, and graphic designers on software projects.

Why do we need a developer? ›

What companies need a developer? Nowadays, any company needs a multitude of technological services to reach its customers. Sell ​​your products, manage your resources, optimize your business processes, etc. The reality is that few are right when it comes to finding the product or service they need the first time.

What is the difference between a developer and a real estate owner? ›

A developer typically refers to someone who is building a property from scratch – either from raw land or by tearing down an existing structure. Whereas an investor could purchase an already constructed property and rent it out to tenants.

Do developers use real estate agents? ›

Real estate developers often work with real estate agents to help facilitate their projects and achieve various goals. That leads to faster sales for developers.

What is a developer vs investor in real estate? ›

Unlike real estate developers who are often involved in the active creation or redevelopment of properties, investors typically focus on the purchase and long-term ownership of real estate assets. Real estate investors deploy a variety of strategies to achieve their financial objectives.

What does it mean to be called a builder? ›

A builder is a person whose job is to build or repair houses and other buildings. The builders have finished the roof. Synonyms: construction worker, engineer, producer, developer More Synonyms of builder.

What do you mean by developer? ›

A developer is a technology professional who works on, builds and creates software, websites, applications and other systems. Often, developers require a knowledge of coding to write and debug source code for applications and software effectively.

What does builder mean in detergent? ›

Detergent builders are chemical compounds that are added to a detergent product to improve its cleaning properties. In this broad definition, cleaning is measured by the net amount of soil removed; that is, the total soil removed, less the amount that is redeposited.

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