how does brightline apply if you swap property with someone?

[jack2016]

lets say you bought a section and then traded with another party in a swap, most likely with no money received, but i'm most likely going to have to fork money to the other party as section is most likely to be worth less than a house for example.

all hypothetical of course.

i would fall under brightline test, other party may or may not.

any ideas?

[Wayne]

lets say you bought a section and then traded with another party in a swap, most likely with no money received, but i'm most likely going to have to fork money to the other party as section is most likely to be worth less than a house for example.

all hypothetical of course.

i would fall under brightline test, other party may or may not.

any ideas?

deemed sale so yes.

[jack2016]

thanks again

[Rosco]

From tax perspective and legal perspective you are selling and then buying again. So could be subject to Brightline rules, and/or GST or other taxing provisions.

Ross

[mrsaneperson]

Does brightline still occur in the case of matrimonial property division? For example there are 10 properties in joint name and then when a financial division is affected each person becomes the owner of 5 properties outrightly. One property being a recent purchase.

[Anthonyacat]

Does brightline still occur in the case of matrimonial property division? For example there are 10 properties in joint name and then when a financial division is affected each person becomes the owner of 5 properties outrightly. One property being a recent purchase.

Bright Line would not apply to the transfer as part of a relationship break-up.

However, I believe that the bright line date may then be reset to the date of transfer so it would apply to any gains in the subsequent 5 years, if sold during that period. I'd need to check that last bit though if I ever came up against it, as it doesn't seem fair.