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Deductions - Choice -ATO or IRS

Discussion in 'Accounting, Tax & Legal' started by jdjw786, 8th Oct, 2013.

  1. jdjw786

    jdjw786 New Member

    8th Oct, 2013
    Perth, Wa
    I would like some advice.

    We have US Investment properties that are structured under a LLC and partnership. We are both Australian for tax purposes.

    Naturally, we have a range of tax deductions, however I am not clear on our options -
    1) can we claim directly some deductions on our ATO returns?
    2) should we put under the IRS forms etc, where they relate to the US Investments?

    For example,
    1) Interest - we have taken a mortgage against our Australian property to fund the property purchase. Can we claim the interest payments under the our ATO returns or need to include under the IRS? Is there a choice?
    2) Travel - we travel each year to inspect the properties and attend a number of investment and professional conferences. Do we claim under the ATO or IRS?

    So far, we have applied the deductions to the US Business/IRS as the purpose is the US investments. But I am unclear on whether we have a choice.

    Why is this relevant? Well we can carry through from the US the tax paid etc, however due to marginal tax rate differences, it make sense to seek to claim directly against the ATO in our situation.