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Sometimes things change, but it's your intention when buying a property that matters.

Selling your rental property or portfolio

There may be a number of reasons you decided to sell a rental property sooner than you thought, including deciding to get out of investing in rental properties.

No matter the reason you’ve sold one or more rental properties it’s unlikely you’ll need to pay tax on the profit from the sale unless you:

  • have a regular patter of buying and selling rental property
  • you’re selling within 2 or 5 years of buying the properties and you're affected by the bright-line property rule.

You become a dealer

You may find the returns from buying and selling rental properties are a lot higher than the actual rental income those properties can provide - so you switch from being a landlord to becoming a dealer. If so, any profits on your sales from the time you become a dealer will be taxable.

This probably will not affect the sale of any rental properties you owned before becoming a dealer. That's assuming you bought them to provide rental income, not for resale.

You sell the family home

The profit from selling your family home because you’re moving house or due to other changes in circumstances will generally not be taxable.

But if you bought the family home intending to resell it, any profit will probably be taxable, regardless of the reason you decided to sell.

Also, if you have a regular pattern of buying and selling your family home then the profit from the sale will likely be taxable.

Property tax decision tree