This question came up while discussing Negative gearing concept with an Indian colleague.
Can Australian Resident claim Negative gearing benefits from overseas property investment in below mentioned scenarios?
Scenario 1 - Buy an existing house (constructed and ready to rent out). Use PPOR equity to buy overseas property i.e Loan from Australian Bank. Rent the overseas property and bring rental income to Australia.
Negative Gearing = Rental Income - (Interest paid to Australian Bank + Expense of overseas property maintenance company + Expenses to bring rental income to Australia like bank transfer fees) ?
Scenario 2 - Buy an existing house (constructed and ready to rent out).Take loan from overseas bank (assuming they give loan).Rent the overseas property and bring rental income to Australia.
Negative Gearing = Rental Income - (Interest paid to Overseas Bank + Expense of overseas property maintenance company + Expenses to bring rental income to Australia like bank transfer fees) ?
Scenario 3 - Same as Scenario 1 or 2 but leave rental income to Overseas account.
Scenario 4 - Same as Scenario 1 or 2 but buy off the plan or under construction property which will be ready for in a year or so
PS - I understand there is DTAA (Double Taxation Avoidance Agreement) between his overseas country and Australia, so tax from property rental income will be paid in Australia
Cheers,
MKB
Can Australian Resident claim Negative gearing benefits from overseas property investment in below mentioned scenarios?
Scenario 1 - Buy an existing house (constructed and ready to rent out). Use PPOR equity to buy overseas property i.e Loan from Australian Bank. Rent the overseas property and bring rental income to Australia.
Negative Gearing = Rental Income - (Interest paid to Australian Bank + Expense of overseas property maintenance company + Expenses to bring rental income to Australia like bank transfer fees) ?
Scenario 2 - Buy an existing house (constructed and ready to rent out).Take loan from overseas bank (assuming they give loan).Rent the overseas property and bring rental income to Australia.
Negative Gearing = Rental Income - (Interest paid to Overseas Bank + Expense of overseas property maintenance company + Expenses to bring rental income to Australia like bank transfer fees) ?
Scenario 3 - Same as Scenario 1 or 2 but leave rental income to Overseas account.
Scenario 4 - Same as Scenario 1 or 2 but buy off the plan or under construction property which will be ready for in a year or so
PS - I understand there is DTAA (Double Taxation Avoidance Agreement) between his overseas country and Australia, so tax from property rental income will be paid in Australia
Cheers,
MKB