Completing your income tax return and IR833

Complete a Bright-line residential property sale information – IR833 form if you had a bright-line property sale during the year and show the income from the sale in your income tax return.

You need to complete an IR833 even if you include the income in your Financial statements summary – IR10.

Include your share of the net profit in the ‘Net bright-line profit’ box in the ‘Income and expenses from residential property’ question in your income tax return.

If you have a bright-line loss, do not include it in your income tax return and instead keep your own record of all bright-line losses you have made.

Using myIR

If we think you have a bright-line sale during the year, we may notify you and display the property details in myIR. It will be pre-populated with property information including the title number, address, bright-line start date and bright-line end date.

At any time during the year, you can confirm whether the bright-line test rule applies.

The table of property sales can be found on your Income tax account panel under:

• More…
• My income section
• Manage bright-line property sales.

At the end of the year, an IR833 form will show in your income tax return in myIR if we think you had a bright-line sale during the year.

If a property sale is excluded from the bright-line test, you can remove the pre-populated IR833 record from your income tax return.

Please note, the net profit amount in the IR833 will not prepopulate into your income tax return, so make sure when you are filing, you also tick the ‘Income and expenses from residential property’ income type on the Build your return page. Manually enter the amount when asked.

Manually adding property sale information using myIR

You can manually add an IR833 form into your income tax return if you have a property sale that needs to be declared – you will just need to add the relevant property information manually.

In your income tax return, tick the disclosure box for the IR833. This will show later in the return, after you have entered your income and deductions.

Sale excluded from the bright-line test

If we notify you about a sale that we think you may need to pay tax on, but it is excluded from the bright-line test or rollover relief applies, you can let us know anytime during the year in myIR or by contacting us.

Alternatively, you can let us know with end of year filing by removing the pre-populated IR833 record from your return in myIR.

Complete a Bright-line residential property sale information form - IR833