Bright-Line Test
Tax rule on profit from selling residential property within a certain period.
The bright-line test taxes capital gains from selling residential property if the property was held for less than a specified period. For property acquired before 27 March 2021, the period is 5 years; acquired between 27 March 2021 and 1 July 2024, 10 years; acquired on or after 1 July 2024, 2 years. The main home is generally exempt.