Hi everyone
My sister and her husband are planning to move overseas to work, for about 5 years. They will rent out her home (PPOR) for the duration.
We hope there will be some expats who can answer some of our questions.
Q1: We have been to the ATO website and understood that my sister and her husband will each have to lodge annual tax returns as non-residents and the net rental income will be taxed at minimum 29c for every $1 (no threshold like residents). Is this correct?
Q2: Also, their home is in NSW. Do they have have to pay land tax while the home is rented? We will phone the NSW OSR to check, but thought we should ask this question on the forum as well.
Q3: My sister and I own a townhouse as an investment property (IP) - tenants in common (sister 30%, me 70%). Does this mean my sister include her 30% portion of net rental income (or loss) from this IP on her non-resident tax return and pay tax as in Q1 above? If it is a net loss, can she offset it against the net income from renting her home, before paying tax? There is no mortgage on her home, so it will be a net income.
Q4: Does anyone know of good resources for reading on taxes for expats? I will post a few more questions on family trust later. My sister will see an accounting firm later, but we want to get some prelim views first.
We appreciate any answer or comment. Thank you in advance!
My sister and her husband are planning to move overseas to work, for about 5 years. They will rent out her home (PPOR) for the duration.
We hope there will be some expats who can answer some of our questions.
Q1: We have been to the ATO website and understood that my sister and her husband will each have to lodge annual tax returns as non-residents and the net rental income will be taxed at minimum 29c for every $1 (no threshold like residents). Is this correct?
Q2: Also, their home is in NSW. Do they have have to pay land tax while the home is rented? We will phone the NSW OSR to check, but thought we should ask this question on the forum as well.
Q3: My sister and I own a townhouse as an investment property (IP) - tenants in common (sister 30%, me 70%). Does this mean my sister include her 30% portion of net rental income (or loss) from this IP on her non-resident tax return and pay tax as in Q1 above? If it is a net loss, can she offset it against the net income from renting her home, before paying tax? There is no mortgage on her home, so it will be a net income.
Q4: Does anyone know of good resources for reading on taxes for expats? I will post a few more questions on family trust later. My sister will see an accounting firm later, but we want to get some prelim views first.
We appreciate any answer or comment. Thank you in advance!