Upcoming Changes to Bright-Line Property Rules in 2024

Apr 15, 2024 | Uncategorized

As a property owner, it’s important to stay updated with the changing tax landscape. One of the significant changes on the horizon pertains to the bright-line property rules. These rules are set to change from 1st July 2024, and here’s what you need to know.

The bright-line period, which dictates the length of time you must own a property before selling it without incurring tax, will be reduced to two years if you sell after 1st July 2024. This is a significant reduction, making it more appealing for short-term property investors.

However, if you plan to sell your property before 1st July 2024, the current bright-line period will continue to apply. This means that depending on when you acquired the property, a five or ten-year period may be applicable.

It’s important to note that the main home exemption will continue to apply under the new rules. This exemption stipulates that if more than 50% of the property’s area is used as the main home and the property is used as the main home for more than 50% of the time it is owned, it is exempt from the bright-line test.

In summary, the upcoming changes to the bright-line property rules are substantial and will impact many property owners and investors. Being aware of these changes and understanding how they affect your tax obligations is crucial. As always, seeking professional advice can be beneficial in navigating these changes and ensuring you’re meeting all your tax obligations. Contact us today by filling out the form below or calling 09 435 3426

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