Income and losses for property captured by the bright line test are treated differently in the tax return:
• After a bright line sale, when net income (a profit) is made, the profit is included in the residential
rental income Box (22A). However, this does not apply to disposals of your main home or a property
taxed under the mixed-use assets rules. Unless the property is included in a portfolio expenses from
other properties cannot be offset against the net income from the disposal,
• After a bright line sale, when a net loss is made, any excess deductions must be carried forward to a
later income year when they can be used to offset net income from the land sale provisions, or future
disposals captured by the bright line rules.
Show the total profit from other property in Box 25B.
For more information on property sales see our guide Buying and selling residential property - IR313.
Complete a Property sale information - IR833 form for each property sold/disposed of and include it
with your return. The form explains how to calculate and correctly return the resulting profit or loss.
You can download the form at ird.govtnz/forms-guides Complete the form even if the details have been
included in a Financial statements summary - IR10 or set of accounts.
If the property was taxable under the bright-line test and made a loss, any excess deductions cannot be
claimed unless they can be offset against net income from other residential property sales.
For more information on property sales, refer to our guide Buying and selling residential property - IR313.
Question 25A Residential land withholding tax (RLWT) credit
If you are an "offshore RLWT person" and have sold or transferred residential property located in
NewZealand, RLWT may have been deducted from the sale price. You should have received a statement
on the completion of the sale process showing the amount of RLWT deducted. You can claim a credit
for any RLWT deducted. Show the amount of RLWT deducted, less any RLWT paid back to you and/or
transferred to outstanding amounts during the income year.
If there was more than one amount of RLWT deducted, show the combined amount, less any RLWT paid
back to you and/or transferred to outstanding amounts during the income year.
Attach a note showing the name of your withholder(s) to the return.
Question 26 Other income
If you received any other income between 1 April 2019 and 31 March 2020, show it at Question 26.
• the sale of non-FIF shares or other property
• financial arrangements
• cash jobs, payments made ‘under the table’, tips, bartering or income from an illegal enterprise
• any share of partnership income as a result of capital investment
• free or discounted shares received under an employee share scheme if your employer has not
provided us with this information
• amount of loss carry-back to 2019.
If you're not sure if your income is taxable, please call us.
If you're a New Zealand tax resident you'll need to pay tax on your worldwide income under
NewZealand tax law. This includes any property sales worldwide whether caught under the bright-line
test for residential property sales or the other property rules.