If you purchased the property before 1 October 2015, the bright-line property rule does not apply.
If you purchased the property between 1 October 2015 and 28 March 2018, the bright-line property rule may apply if you sell it within two 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 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.
Exclusions
There are three exclusions:
- if it's your family/main home
- if you inherited the property
- if you're the executor or administrator of a deceased estate
The bright-line rule does not replace existing property tax rules. You might still need to pay tax on your property profits even if the bright-line rule does not apply.
My obligations
If you sell a property that falls under the bright-line rule, then you'll need to complete an income tax return and a Property sale information form - IR833 at the end of the tax year. If you have a tax agent, they'll be able to help.
Learn more about how to file an income tax return
Find out more about the bright-line property rule, including exemptions that might apply
Find out everything you need to know about residential property and tax