IRD crackdown on sale of property?!
Have you recently received an IRD letter informing you that, according to their records, you have sold or transferred residential properties within the bright-line rules and are required to pay income tax on any profit?
Have you seen in the news recently regarding this and that "one in four" not paying tax on properties they flipped in the last year?
IRD will be sending a further email in the coming few weeks regarding this and will provide details of the property in question.
What to Do:
Our advice is DON'T PANIC!
Send us a copy of your letter
Provide us with the details of the sale or transfer (if you haven't already)
If IRD rings you, try not to give out any information and ask them to email you their request. Anything you say can be used against you. Contact us and we will liaise with IRD on your behalf.
You may not need to pay tax on the property sale or transfer as exemptions may apply. We have seen cases where lawyer has filed the Land Transfer Statements incorrectly.
If there is tax to pay, we will ensure you don't pay any more than you have to and in some case, we can help you save tax.
A quick refresher of the bright-line test:
Applies to the sale of residential property only
For properties bought between 1 October 2015 and 28 March 2018, you must pay tax on the gain if you sell it within 2 years,
For properties bought after 28 March 2018, you must pay tax on the gain if you sell it within 5 years,
Some exemptions will apply eg. the property was your main home, so please check with us
OneTeam is here for you, please send us an email or make contact here.