AU Overseas Buyer - Tax Benefits?

[Chee]

Hi everyone,

I'm an Australian citizen who is currently residing overseas earning a foreign salary. If I've just purchased an investment property in Australia, with the loan being established in Australia by an Australian bank - would I be eligible for any tax benefits?

I've been told that any tax offsets on the IP will be able to be offset on your taxable income upon your return to Australia.

If anyone has information on this, is currently in this situation or could direct me to a website with this answer, please let me know.

Thank you.

 

[geoffw]

While I don't kmke the answer, I think k it may depend on your tax status. Are you a resident for tax purposes? ie, do you file tax returns in Australia (and possibly claim tax credits for tax paid overseas)?

 

[Terry_w]

Normal benefits on your income. Any loss will reduce your taxable Australian income - and possibly the foreign income depending on the tax laws there.

If you are a non resident then you may not have much of a taxable income in Australia so any loss may have no immediate benefit but can be carried forward to be offset until used up.

No 50% CGT discount if you are a non resident.

Watch out for land tax too.