Property Conveyancing Services Blog

Do you need to pay tax on a property you have purchased in New Zealand? The Inland Revenue Departments state this depends on your reason or intention at the time you purchased the property. When the IRD decides whether or not you should pay tax on the profit from the sale of the property, intention is the deciding factor. If you purchased the property with the firm intention of selling it when prices rise to make a gain from the increase in the value the profit is likely to be taxable. However if you purchased the property to provide a home for your family, any profit from the eventual sale will most likely not be taxable. The test is to ask yourself “what was my reasons for purchasing this property” To be continued stay posted