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Residential property
Whare nohoanga

What if you buy with the firm intention of resale

When working out whether or not you are required to pay tax on the profit from the sale of a property, your intention when you bought it is one of the important factors to consider.

It is common for people who buy property to think of themselves as a property investor however this is not always the case.

If you have a firm intention to sell the property at the time you purchase it, then for tax purposes you are likely to be regarded as a property speculator or a dealer and you will have to pay tax on the later sale.

Use our decision tree to find out what type of buyer you are

Go to mistaking property dealing for property investment

 


Date published: 30 Jul 2010

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