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Courses/Accounting & Tax/Real Estate Tax

Bright-Line Test Update: Why It Still Matters

Understanding Updated Bright-line Rules and Tax Strategies for Residential Property.

Created byTEO Training
BeginnerUpdated Jan 17, 2025
Bright-Line Test Update: Why It Still Matters

What You'll Learn

check_circleUnderstand the application of the updated Bright-line test, including exemptions and transitional issues.
check_circleIdentify the impact of rollover relief changes and practical restructuring options.
check_circleApply interest deductibility, residential ring-fencing, and MUA quarantining rules to Bright-line sales.
check_circleDetermine holding cost deductibility under the Bright-line rules.

About This Course

The Bright-line rules as amended from July 2024 have now been in force for a period, following the reintroduction of a bright-line period of two years and a loosening of the rollover relief rules.

In this course, we will look at the rules as a whole and consider the impact of the recent changes on how the rules can be applied, plus how the rules applied in transition.

This is an opportunity to come to terms with the rules as they now stand, consider the lessons we have learned, and look at what options you may have in terms of restructuring ownership of residential land and managing taxation outcomes.

Main Topics:

  • How the bright-line test applies, including:
    • Overview of the historic Bright-line rules and when they could still apply.
    • How properties sold after 1 July 2024 will be treated, including transitional issues.
  • How the main home exemption will now apply.
  • How the pattern of buying and selling rules apply.
  • The relevance to other land rules.

Rollover Relief:

  • How these apply, including the impact of the latest changes.
  • Practical considerations and options for restructuring.

Interest Deductibility Limitation, Residential Ring Fencing, and MUA Quarantining Rules:

  • Application to a bright-line sale.

Holding Cost Deductibility:

  • How it applies when the bright-line rules apply.

Suited To:

The course will be suited to all levels of accountants, corporate professionals, public practice – law and accounting, and general business advisors.

Your Instructors

TEO Training
TEO Training
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TEO Training provides practical learning experiences on primarily tax-related topics for accountants, lawyers and business advisors across New Zealand.

Daniel  Gibbons
Daniel Gibbons

Partner at Findex/Crowe

Daniel is a Partner for Findex in Queenstown. Daniel has been with Findex for 16 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures. Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.

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