Who'd want to be a landlord now ?

[Balance]

$12.5mill taxes or $37.8mill in profits (assuming the top tax rate) possibly closer to $50mill. assuming an average of 25% tax rate for one year.

Better than a kick in the pants.

Then there are those who ‘voluntarily’ agree to pay tax on their property gains after becoming aware of that audits.

[Aaron]

Then there are those who ‘voluntarily’ agree to pay tax on their property gains after becoming aware of that audits.

True, because the extension of the bright line test to 5 years was a recent adjustment, I had heard the IRD contacted people to tell them they may have missed something from their tax returns and if you don't want late payment and shortfall penalties maybe you want to revisit your calculations before we audit. The bright line test is pretty cut and dried in many cases so it would be interesting to know how much was voluntarily disclosed after contact from IRD prior to being audited.