The Bright-Line test applies if you brought and sold a property within 2 years. Any gain less any expenses is taxable and adds to your taxable income in that year.
When your annual tax return is completed, you are required to file a IR833 form, gains will be taxed in that year, losses can only be offset against other property gains in that year.
The 2 years was later revised to 5 years see the diagram below for the dates.
There are a couple of exceptions one is to exclude the family home under most circumstances, and there are a couple of other items.
Issues come around the date that the property was purchased, when it was sold and the costs that can be claimed. Off the plan purchases have different purchase dates compared to
buying a house already built.
We can help you to complete the IR833 form confirm your tax position just email email@example.com for assistance.