Some homeowners have been caught out by recent tax measures designed to level the playing field between first-time buyers and investors.
(File image) Photo: RNZ / Nate McKinnon
Amendments to the tax law covering the extension of the bright line test to 10 from five years were still being worked through, but were expected to be passed into law by the end of March.
Chartered Accountants ANZ financial services leader John Cuthbertson said there had been no education about how tax changes affected homeowners who were not investors.
"The concepts themselves are quite simple and we've really been pushing both government and Inland Revenue that there needs to be an appropriate education campaign for some of these sort of far reaching impacts," he said.
"But we still haven't seen anything of substance."
In the meantime, homeowners who were not investors and did not own more than one property had been caught in the net and subject to capital gains tax as if they were investors.
Cuthbertson said homeowners who vacated their main home for more than one year for any reason, or rented it temporarily, were treated as if they were investors under the planned changes.
"Going from the old rules, which were five-year bright line test, to now having a 10-year bright line test, that changes landscape significantly," he said.
"These rules were first introduced with a two-year test to supposedly stop property speculation, but a 10-year test is more like a capital gains tax."
He said unfortunately, the test was broad brush.
"And that's the trap. When you have these very broad rules, it unfortunately has unintended consequences and catches people that shouldn't be captured."
The examples include people who have been seconded away from home for more than a year, or where it may take more than a year to sell your home.
"Another other classic one is where you have an extensive renovation to your house or repairs required. And that could be because you chose to do it or it could be through a natural disaster event, fire, flood, or earthquake, where you're physically not able to be in the home," he said.
"And that taxing event just adds to the stress."