Income from sale of land and/or buildings
Include all income from land sales that are excluded from the residential property deduction rules. Net income from disposals of some residential property are specifically excluded from the rules such as the main home or holiday home taxed under the mixed-use asset rules.
Tax losses from disposals of residential property are also included under this question.
Net income from taxable sales of residential property, including bright-line sales, is included under Residential income in Question 8.
The profits are taxable if the authority bought a property for the purpose of reselling it or is in the business of buying and selling land and/or buildings.
The profits may be taxable if the authority:
- is in the building industry and improved a property before selling it
- developed or subdivided land and sold sections
- had a change of zoning on the property and sold it within 10 years of buying it.
This includes any property sales worldwide caught under the other property rules.
Complete a Property sale information – IR833 form for each property sold/disposed of and include it with the return. The form explains how to calculate and correctly return the resulting profit or loss. You can download the form at ird.govt.nz/forms-guides
Complete the form even if the details have been included in a Financial statements summary – IR10 or set of accounts.
For more information on property sales, refer to our guide Buying and selling residential property – IR313.
Write the income or loss (other than a bright-line income or loss) at Box 9.