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New calculators and decision tree for property sales

IRD have got two new calculators and updated the decision tree to help you work out:

  • if a property sale is taxable or not
  • what the net profit or loss is on the sale, and
  • the income or loss to show in the income tax return, including the new bright-line loss treatment rule when there are up to five property sales.

Property tax decision tree

The Property tax decision tree will take you through a number of questions to help determine whether the property sale is taxable under any of the property rules. This includes the new bright-line test applicable to property sales on or after 1 October 2015.

Property net profit (loss) calculator

You will be able to work out the net profit or loss on each taxable property sale using the Property net profit (loss) calculator. Up to five property sales can be included in the same calculation.

Property net profit (loss) summary calculator

You will be able to work out the total income to show in the "Other income" field of the income tax return when the net profit or loss is known for up to five property sales using the Property net profit (loss) summary calculator.

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.

  • Note
    The results are only a general guide based on the answers or information provided. You still need to self-assess whether the disposal/sale of their property is taxable, what expenses are deductible and the amount of income to return in the income tax return. If they're unsure you should seek advice.