In this episode, we discuss the bright-line test, which is New Zealand's version of a capital gains tax. While seemingly clear cut – sell a property (other than your own home) within 5 years and you'll be taxed – there are many fishhooks.
For instance, if you show a pattern of buying and flipping your own home then you will be taxed on those transactions. If you inherit a property with a sibling but purchase your siblings half, then any gains on the extra 50% of the property are taxable if you sell within 5 years ... and then there's tainting.
We also discuss our upcoming property investment webinar, where three real investors are going to share their stories and numbers. This is happening on Tuesday 1st September at 7pm. Use the link above to register.
The Property Academy Podcast