Depreciation and CGT for expat

[Craiginqatar]

I hope someone can assist. I'm an expat, pay no income taxes & have 2 IPs in Australia. I just bought a 1 yo apartment in Darwin that will attract a good level of depreciation. As I pay no taxes except on rental income and expenses and revenue basically cancel each other out can this be deducted later when the property is sold or it will get rolled over as a future income tax deduction?

Does anyone know what happens in this case?

Cheers

Craig

 

[AXXO]

I hope someone can assist. I'm an expat, pay no income taxes & have 2 IPs in Australia. I just bought a 1 yo apartment in Darwin that will attract a good level of depreciation. As I pay no taxes except on rental income and expenses and revenue basically cancel each other out can this be deducted later when the property is sold or it will get rolled over as a future income tax deduction?

Does anyone know what happens in this case?

Cheers

Craig

You lodge an Australian tax return each year declaring your IP income less allowable tax deductions.

Losses, if any, will be carried forward each year. They can then be used to offset any CGT.

 

[Terry_w]

Hi Craig,

You would need to file a tax return each year because of the rental income. You should claim it as normal and end up with a larger loss which can be carried forward until you have a profit.

 

[Craiginqatar]

Thanks for the info, it's most appreciated.