Bright Line Rule

What is the bright-line property rule?

The bright-line property rule means that people who sell a residential property might need to pay income tax on any gains.
If you purchased the property on or after 29 March 2018, the bright-line property rule may apply if you sell it within five years of buying.
  • If the property is your family/main home, you inherited the property, or if you’re the executor or administrator of a deceased estate, the bright-line rule does not apply.
  • If you purchased the property prior to 1 October 2015, the bright-line rule does not apply.

For further information seek legal and financial advice and/or see the IRD website:

https://www.classic.ird.govt.nz/campaigns/2019/brightline/brightline.html

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