154 days ago

Brightline Changes from 1 July 2024

Financial Adviser, Director from adviceHQ

πŸ”Š Important Update from the IRD on Bright-line Property Rules πŸ”Š

Starting 1 July 2024, significant changes are coming to the bright-line property rule. Here's what you need to know:

πŸ—“οΈ Key Date to Remember:
βœ” From 1 July 2024, the bright-line property rule applies only if you sell a property within 2 years of purchasing it.

πŸ“… Selling Before 1 July 2024:
The current bright-line periods still apply:
βž– Properties bought between 29 March 2018 and 26 March 2021: Bright-line period is 5 years.
βž– Properties bought on or after 27 March 2021: Bright-line period is 5 years for qualifying new builds and 10 years for other residential properties.

🏑 Selling Your Main Home:
The bright-line property rule generally does not apply if you sell your main home. This remains unchanged, but the criteria are specific:
βž– More than 50% of the property's area must be used as your main home.
βž– The property must be used as your main home for more than 50% of the time you owned it.
βž– If you build on the land, the construction period does not count towards determining your usage for the main home exclusion.

πŸ”„ New Rollover Relief Rules for Associated Persons:
βœ” The rollover relief rules are extended to cover transactions between associated persons:
βœ” Includes associated companies, relatives (within 2 degrees of relationship), trusts and their beneficiaries, partners and partnerships, and look-through companies and their owners.
βœ” Both the transferor and transferee must be associated for 2 years before the transfer.
βœ” Rollover relief can be claimed once in any 2-year period.

For specific accounting or taxation advice, please contact your accountant.

#adviceHQ #brightline #nzpropertyinvestor

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More messages from your neighbours
1 day ago

Poll: Do you think NZ should ban social media for youth?

The Team from Neighbourly.co.nz

The Australian Prime Minister has expressed plans to ban social media use for children.

This would make it illegal for under 16-year-olds to have accounts on platforms including TikTok, Instagram, Facebook and X.
Social media platforms would be tasked with ensuring children have no access (under-age children and their parents wouldn’t be penalised for breaching the age limit)
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Do you think NZ should follow suit? Vote in our poll and share your thoughts below.

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Do you think NZ should ban social media for youth?
  • 84.5% Yes
    84.5% Complete
  • 14.3% No
    14.3% Complete
  • 1.3% Other - I'll share below
    1.3% Complete
1036 votes
19 hours ago

Got a Minute? Prove You’re the Smartest Neighbour!

Riddler from The Neighbourly Riddler

What is it that when given one, you’ll have either two or none?

Do you think you know the answer to our daily riddle? Don't spoil it for your neighbours! Simply 'Like' this post and we'll post the answer in the comments below at 2pm.

Want to stop seeing riddles in your newsfeed?
Head here and hover on the Following button on the top right of the page (and it will show Unfollow) and then click it. If it is giving you the option to Follow, then you've successfully unfollowed the Riddles page.

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11 hours ago

What's your favourite recipe for courgettes?

Mei Leng Wong Reporter from NZ Gardener & Get Growing

Kia ora neighbours. If you've got a family recipe for courgettes, we'd love to see it and maybe publish it in our magazine. Send your recipe to mailbox@nzgardener.co.nz, and if we use it in the mag, you will receive a free copy of our January 2025 issue.

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