Overseas property

Hi Friends
We have a property in New Zealand which was our PPOR before we moved to Australia. Now as the market is down I cannot sell that property and is rented out right now and we bought our own house here. My friend suggested that I am able to claim loss on that property here in Australia and claim tax returns similiar to having investment property in Australia. Are we able to do that? Do we have to pay captail gains tax when we decide to sell that property? Can some one guide me on this issue please. We are currently topping up $100pw for repaying mortgage on New Zealand property.

 

I was in the same situation a couple of years ago and was led to believe the following -

Rental income on the foreign IP is considered income on your Oz Tax Return.
COB (Cost of business) ie. interest payments, mgt fees, maintenance, land taxs, etc, cannot be brought on to your Oz Tax Return.
When you sell the foreign property the capital gain has to go on to your Oz Tax return, however I don't know how they/you calculate the cost base for the asset.

ie. You have to declare gains/income (income & capital) but you cannot put any losses on your tax return.

I am not an accountant, This knowledge is through research and reading. I suggest you discuss with a qualified accountant.

 

Hi

I tend to agree with Guy, with one exception and that's NZ. With our Closer Economic Relations treaty with NZ it may be possible to claim your expenses on an NZ property. But I'm only guessing, so I'd definitely recommend you ask your accountant to check this out.

Cheers, Paul

Paul & Karen Dobson
Welcome to the JV Property Partners
Unheard of returns from residential real estate.
Phone: 0447 973 235

 

greece also pays good yields

 

spain on the coast as well.