The IR833 form is filled out when a bright-line property sells and the income from the sale needs to show in the tax return.
We have noticed that the ‘Sale price’ in some IR833 forms is incorrect. The ‘Sale price’ is the total price the property was sold for before deducting any expenses.
In some cases expenditure is being incorrectly deducted from the 'Sale price'. The 'Deductible expenses’ box, where the expenditure should appear, is blank or showing ‘nil’.
We receive data from external providers to match these sales. If these forms are not completed correctly we may need to contact you for additional information.
A reminder when completing the IR833 form and income tax return:
- Include the 'Sale price' before expenses in the 'Sale price' box.
- When completing the IR833, transfer the net profit into the income tax return as it does not transfer automatically.
- If there is a bright-line loss, do not include it in the income tax return. Instead, keep records of any bright-line losses you have made.
For more information:
Complete a Bright-line residential property sale information form - IR833