You only need to pay income tax on property sales in certain circumstances. If you know you need to declare your income from selling a property, here’s what to do.
Fill out your income tax return
Fill out an income tax return for the tax year you sold the property. You’ll generally include the amount of property income you’ve earned in the 'Profit/loss from sale of property' box.
Tell us about bright-line sales
The bright-line property rule means if you sell a residential property within certain time periods, you may have to pay income tax on any profit.
If the bright-line rule applies to your property sale, you also need to fill out a Bright-line property sale information - IR833 form. Send this to us along with your income tax return.
If you file your return online in myIR, you can fill out your IR833 at the same time.
Bright-line and selling at a loss
If you sell a residential property at a loss and the bright-line rule applies, the loss will be ring-fenced against other property income.
This means you cannot claim the loss against other types of income such as self-employed income, rental income or salary and wages. You can only claim the loss when you make a profit from taxable property sales in the future.
Pay any tax owing
If you have an income tax bill, make sure you pay by the due date.