Buying or selling a house? One thing you should know

 

If you’re buying or selling residential property, we’re required to provide the IRD with an IRD number.

BuyingSelling.jpgWhy? This is part of their new bright-line test. Income tax will be imposed on any gain from residential land bought or sold within two years – that’s land with or without a dwelling on it.

Any exceptions? Yes. If it is your main home, the place you use predominately to live in, you’re excused. (But you can’t buy and sell a main home within two years two or three times thereafter…) Ditto if it is a transfer under a relationship property agreement, where your relationship has broken down. It also won’t apply if it is a transfer following a death to an executor, administrator or beneficiary, but see us for all your legal advice around these things.

What about my workshop or office? At this point, the bright-line test only applies to residential land and dwellings. Land that’s used for business or industry (ie forestry, horticultural and pastoral businesses) are excluded from this. 

How does it affect my home(s) owned by my trust? Talk to us about this directly and we can give you an answer based on your individual circumstances.

So what do I need to do again? Make sure you give us your IRD number for any residential property purchase or sale you make. If you’re purchasing using a trust, you’ll need an IRD number for that trust – it pays to apply early because that can take a while.

 
 

We’ve just given you a top-level explanation here but phone the Rice Craig office on 09 295 1700 to be put through to one of our helpful lawyers who can run through what the bright-line test means for you.

 
 

News & Resources

Managing Shared Care during Alert Level 3 - Coronavirus Covid-19

Managing Shared Care during Alert Level 3 - Coronavirus Covid-19

Parents are wondering how the move to Alert Level 3 will impact upon care arrangements for their children... Learn More

Employers' Obligations at Alert Level 3 - Coronavirus Covid-19

Employers' Obligations at Alert Level 3 - Coronavirus Covid-19

What are your obligations as an Employer at Alert Level 3... Learn More

Leases during the lockdown period - Coronavirus Covid-19

Leases during the lockdown period - Coronavirus Covid-19

What does the lockdown period mean regarding leases ... Learn More

Work and Pay for Employees during lockdown - Coronavirus Covid-19

Work and Pay for Employees during lockdown - Coronavirus Covid-19

Work and pay for employees during a government lockdown... Learn More

Henry Herman appointed as partner effective 1 January 2020

Henry Herman appointed as partner effective 1 January 2020

Henry Herman appointed as a partner effective 1 January 2020. Henry has a long-standing involvement in the pacific community and is chair of the Cook Islands Development Agency NZ (CIDANZ)... Learn More

 
 

Contact Us

+64 9 295 17008-10 Queen St, Papakura 2110, Auckland

E-mail address
Full Name
Message
 

© Copyright 2017 Rice Craig - All rights reserved.