Property sales and tax

Property sales and tax

The IRD have added a new ‘decision tree’ and two new online calculators on their website to assist taxpayers on deciding whether or not a property sale is taxable or not. The new calculators include information on the new Bright Line test that applies to property sales after 1 October, 2015.

Property Tax Decision Tree

This tool will help you make sense of the otherwise complex tax rules around property transactions. It will help you determine whether or not any tax is payable when you dispose of a property. You can access the decision tree by clicking here.

Property net profit and loss calculator

This calculator will assist taxpayers to work out whether a profit or a loss has been recorded on the sale of a taxable property. Up to five property sales can be included. You can access it by clicking here.

Property net profit or loss summary calculator

You can work out the total income to show in the ‘other income’ field of your tax return by using this calculator here.

From the 2016 income year a separate IR833 form is required to be furnished detailing information on the sale of any taxable property if the profit is included as ‘other income’.

Both calculators take into account whether a loss made on a property sale caught under the bright-line test can be claimed in that year.


Of course we still strongly advise you to seek professional tax advice to ensure that your understanding is accurate. We are only too happy to help.

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