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In New Zealand, there is a law for capital gains tax called the bright-line property rule:

If you sell a residential property you have owned for less than 10 years you may have to pay income tax on any gain on the sale, unless an exclusion or rollover relief applies. This is the bright-line property rule and it also applies to New Zealand tax residents who buy overseas residential properties.

I have reason to believe that there is a minimum period for this, or a real estate agent is excluded from it. I can't find this on the IRD's (Inland Revenue Department) web site.

This is just for interest's sake but is based on a real event that has happened. We sold one of our rental properties. The buyer was a Real Estate Agent, and he sold it (before he bought it form us) to another property dealer. Who in turn had sold it before we received any money, to the final purchaser.

I can't do anything about, nor do I intend to. It is what it is. However, I can't imagine both of these intermediate entities paying Capital Gains Tax. Is there a minimum period, or does a negative period count as no period?

sjy
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Rohit Gupta
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1 Answers1

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New Zealand does not have a capital gains tax

However, various forms of gain are treated as income and are taxed accordingly. One of these is where the taxpayer deals in such property, which would undoubtedly captures both buyers/sellers in the chain you describe. Their gain will be part of their income, and they will pay tax on it.

Dale M
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