Property tax rules
New Zealand has no general capital gains tax, but some property sales are taxed, rental income is taxed, and the rules for interest, losses and depreciation have changed several times. Here they are as Inland Revenue states them, and how Landsight's tax module applies each one by its dates.
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Watch on YouTubeA residential property sold from 1 July 2024 within two years of buying it is taxed on the gain, unless an exclusion such as the main home applies. For sales before then, property bought from 29 March 2018 had a longer period — five or ten years, depending on when it was bought.
Interest on loans for residential rentals is fully deductible again from 1 April 2025. Between 1 October 2021 and 31 March 2025 it was limited — to 80% in the 2024–25 year — with new builds exempt.
Since the 2019–20 income year, deductions for residential rentals are limited to residential rental income. A loss is carried forward to a later year rather than set against salary or other income.
Residential buildings are not depreciated. Chattels — heat pumps, carpets, appliances — are, at Inland Revenue's rates, and an asset costing under $1,000 can be deducted at once.
Long-term residential rent is exempt from GST; short-stay accommodation through a marketplace has had GST collected since 1 April 2024. Sales can also be taxed for the intention of resale, or for dealers, developers and builders — Landsight raises these for every sale and leaves the conclusion to your accountant.
Each rule is kept with the dates it applies between and its source, and a calculation records which version of the rule it used, so last year's result can be reproduced after a rule changes. Landsight reads and explains the records; it is not legal, tax or financial advice.
Questions
Two years, for residential property sold on or after 1 July 2024, as Inland Revenue states. The main home is excluded where the property was actually used as one.
Not as a general tax. A gain on residential property is taxed under the bright-line test if it is sold within two years, and under the other land-sale rules if, for example, it was bought with the intention of reselling it.
No. Residential rental losses have been ring-fenced since 2019: they are carried forward against future residential rental income.
Which plan has it
The Tax module: Premium and Enterprise.
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