When you need to pay tax on property sales

If you sell property in any of these situations, you may need to pay income tax on your profit.

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Buying property intending to resell it Generally, if you buy property with the intention of reselling it, you’ll have to pay tax on any profit you make from its sale.
History of buying and selling property If you have a regular pattern of buying and selling property, you may be considered a property dealer and may have to pay tax when you sell.
Property dealers, developers and builders You’ll probably need to pay tax on any profit from a property sale if you’re a dealer, developer or builder, or otherwise involved in the property business.
Associated with a property dealer, developer or builder You may need to pay tax on a property sale if you’re associated with someone in the property business, even if you’re not personally a property dealer, developer or builder.
The bright-line test If you sell a residential property, any profit will be taxable if it is sold within a set period of time, the bright-line period, unless an exclusion or rollover relief applies.

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Āwhea me utu tāke i runga i ngā hokonga rawa whenua When you need to pay tax on property sales