myIR, payments and more
If you're buying residential property, make sure you know what your tax obligations will be when you come to sell the property.
Things you need to know
As a general rule, if you're buying a property with the intention of selling it, you will probably have tax to pay on any profit you make. There are different rules associated with buying a:
It's important that you think carefully about your intentions when you first agree to buy a property because this will determine your tax situation when you come to sell. Also, if you buy and sell a property within two years, you'll pay tax on the income you earn from the sale. This is regardless of your intention at the time of purchase. A withholding tax may also be deducted at the time of sale.
If you're in the property industry (for example you're a builder, developer, a dealer) or associated with someone from within the industry, then you'll be subject to different rules as well. We recommend you get professional advice from a tax advisor.
When buying property you will need to provide information to your property lawyer or conveyancer. This may include your IRD number and taxpayer identification number (another country’s equivalent of an IRD number) if you have one.
If you're buying a rental, you also need to know your tax obligations while you're renting out the property.