When is the sale of a lifestyle block excluded from the bright-line test?
This question we’ve been asked explains when lifestyle blocks sold within 2 years will be excluded from the bright-line test. It will be of interest to sellers seeking to rely on the farmland or main home exclusion. It replaces (for disposals on or after 1 July 2024) QB 18/17: Income tax – bright-line test – farmland and main home exclusions – sale of lifestyle blocks.
Income Tax Act 2007 – ss CB 6A, CB 16A and YA 1 definitions: “farmland”, “residential land”