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Negative gearing and tax on investment property when living overseas

Discussion in 'Real Estate' started by orolain, 22nd Apr, 2009.

  1. orolain

    orolain New Member

    Joined:
    22nd Apr, 2009
    Posts:
    1
    Location:
    London
    I've been living in London for around 18 months now. I have owned and lived in my Sydney unit for 2 years and have 27 years of a 30 year mortgage to pay off.

    My question is what are the tax implications of renting out my property whilst living in London? Do I pay tax on the $500 rental income p/w and if so, can I still claim deductions back on this taxable income (even though I'm living Oz and only Aussie income will be the rent).

    I've heard that ifproperty is being negatively geared, the loss created will sit there indefinitely to offset other future Australian sourced income of yours. Is this true?