Articles

Bright-line test affects rural properties too

New rules, known as the “bright-line test”, were introduced in October 2015 to allow Inland Revenue to easily tax property investors that frequently buy and sell residential property for a profit.  These new rules apply to residential property that is purchased after 1 October 2015 and sold within two years of purchase.  

Residential land is defined as any land that has a residential dwelling on it, or is zoned to allow one to be built.  The wide definition means a significant number of rural properties will be affected too.  

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