Depreciation on an overseas property

[kiwipaul]

Hi

I understand depreciation on property in Oz and how the taxman treats it.

BUT

what about an overseas property (NZ to be precise). They currently have the same system as here but in the very near future they are stopping you depreciating the house itself, but you can still depreciate the fitting and fixtures.

1) If tax resident in Oz can you use Oz dep rates on your NZ property or do you have to use NZ rates.

2) can you choose which countries rates to use to maximize your tax advantage in Oz.

I'm only talking about what you do as regards the Oz taxman because obviously your NZ tax return would be based on the NZ tax rules.

I'm currently declaring my NZ dep on my Oz tax return.

I've tried asking Oz tax people about this but just get vague responses and I'll get back to you but they never do.

Also what happens if you have a property in UK where as far as far as I know their are no depreciation rates.

 

[livewildcard]

I believe if the funds are coming back from NZ and paying tax as Australian resident then the depreciation can be or should be done in Australian rates. I dont think you have a choice which one to use I dont think but one of the experts will let us know.

Also I believe NZ depreciates the whole purchase price of the house which is totally different to Australia laws. Or they just take off the land value and whatever is left is depreciated. That's totally different to Australia I think.

Once again expert will let us know.

 

[kiwipaul]

Also I believe NZ depreciates the whole purchase price of the house which is totally different to Australia laws.
Once again expert will let us know.

No they do it basically the same as Oz. You depreciate the house at 4% (just the building) and you depreciate the various fixtures and fitting at different rates which you get a valuer to provide you with a list with the value, dep rate and expected life. The land you cannot depreciate.

I'm sure the dep rates are slightly different for each country.

Income from property is negative due to exp and dep exceeding income but that will change when I loose dep on house.

But like I said it changing in NZ and you will no longer be able to dep the house itself, just the fixtures and fitting.