Expenses claimed as capital costs

[kiwipaul]

Can you claim expenses (repairs, maintenance, agents costs, basically anything that you spend on an investment property) as a buying and selling expense which can be used against your CGT when you sell the property.

This is regarding a property in NZ. With foreign income you have 4 classes of income and you cannot claim losses from one class against income in another class.

Basically you cannot use negative gearing on a foreign property against your income in Oz. I've got large paper losses on this property that I can only use against the income from the property and as I intend to sell in the near future I want to redirect the expenses to reduceing my CGT bill.

I'm resident in Oz and have been for last 10 years.

 

[Rob G.]

There is no quarantining in Oz (with a few exceptions).

You would claim ongoing revenue type expenses immediately if the property is earning your assessable income here.

If they are capital outgoings then they add to the cost base for CGT.

It doesn't matter where the property is located ... subject to any double tax agreement with NZ (no time to read up on that one).

Interestingly, since there is no CGT in NZ, then the ATO probably gets to grab all of that one !!

Cheers,

Rob