Paying income tax on profits from property sales
You may need to include profits you make from selling property in your taxable income in some circumstances. Income earned from property sales is like any other income. You must pay income tax on it.
Whether your profits from selling property are treated as income will depend on your intention when you bought the property, and on whether you or someone associated with you is in the business of dealing in, developing or subdividing land, or in building. There are special rules for people in these businesses.
If one of your intentions for buying a property was to resell it, the profit is likely to be taxable.
If you bought a property to provide a family home, any gain from the eventual resale will most likely not be taxable, unless you have a history of buying and selling your family home.
Do it now
Learn about
- Your reasons for buying your property are important
- Paying the tax you owe
- Putting your tax affairs right
Date published: 28 Apr 2008
Back to top
