How does the bright-line test affect selling my property?

The bright-line test, under the Income Tax Act 2007, treats gains from the sale of residential land as taxable income if the property is sold within a specified bright-line period from the date of acquisition, unless an exclusion applies, most importantly the main home exclusion, which can apply if the property has been used predominantly as your main home for most of the time you owned it. The length of the bright-line period has changed over the years for properties acquired at different times, so it depends on when you bought the property, and you should check the current rules that apply to your specific purchase date. There are other exclusions, such as for inherited property, and specific rules where a property was only partly used as the main home or the ownership interest changed. Since the calculation is date sensitive and technical, seek advice from an accountant or tax adviser well before selling.