Question for Jeremy

From: Jenny Nowakowski

This is a question for Jeremy.

I enjoyed reading about your IP strategy.

Do you have to pay double tax on your rental income in the U.S.?

I'm interested in investing in the U.S. but if I have to pay double tax, I don't know if it would be worth it for me yet.

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Reply: 1
From: Kellie Dutton


Not answering this for him but to give you a basic idea.....
You do not pay double tax. The US has a tax treaty with us so basically you either pay tax in the US or here, still need to file returns in the US but if tax is paid there on income then you receive foreign income tax credits for your tax here. The US prefers you to pay tax there. There are taxes in the US that you need to pay and are not credited such as land taxes etc. and those you need to check with each County you are thinking about looking at. The US doesn't have uniform rates for land taxes, regulated by the States. As far as simple tax on income though, it is not doubled.

Hope this helps.

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Reply: 1.1
From: Simon St John

Hi Kellie,

Just wondering........Are you however liable for the difference between what you rate of tax paid in the US and what you would have paid in AUS?

In other words, if you pay (say) 20% in the US and your marginal rate here is 48% do you have to pay the difference in AUS tax as well (in other words claim the tax credit of 20% and pay the difference)?
Cheers, Simon
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