Properties bought on or after 27 March 2021 will have an increased bright-line rule of 10 years.
The new changes mean that if you sell your home before the 10-year bright-line period, you might have to pay income tax on the profit when you sell it.
There are, however, numerous exceptions to the rule that might exclude you from having to pay the tax altogether. The criteria are relatively complicated, and we suggest you get in contact with a lawyer to explain what these new rules mean for your property when you want to sell.
Some of these include:
- If your property is your main home, the bright-line rule does not apply.
- If you have inherited the property, you won’t have to pay the income tax.
- If you are an executor or administrator of a deceased estate property, the bright-line rule does not apply either.
HomeLegal are your friendly property lawyers who can give you advice on how to best go about the bright-line rule and help you understand whether you fit one of the criteria mentioned above.
The team at HomeLegal have been helping home sellers and buyers with all things property law. The experienced group of lawyers can help with mortgages, refinancing, and anything to do with selling or buying residential and commercial property in the Wellington region. With three conveniently located offices, clients can come and visit their lawyers effortlessly. If you would like to know more about the new bright-line rule and what it means for you, contact us now, and we can help answer any questions and give legal advice.
For more information, visit our website at https://homelegal.co.nz/.