Sorry, did you say something
What ?????
Residency and aussie tax while working overseas
- Thread starter alexlee
- Start date
What ?????
I had made an edit, but failed to send it somehow
The point I was trying to highlight was that PWC had advised that foreign income can be applied against cashflow losses on your Oz IP to effectively wipe out (fully or partially) your cashflow loss.
This was news to me as I had contemplated as a resident for tax purposes living OS coming home to a fat tax credit. As a non-resident for tax purposes I would get this.
Rgds,
The point I was trying to highlight was that PWC had advised that foreign income can be applied against cashflow losses on your Oz IP to effectively wipe out (fully or partially) your cashflow loss.
This was news to me as I had contemplated as a resident for tax purposes living OS coming home to a fat tax credit. As a non-resident for tax purposes I would get this.
Rgds,
That being the case the foreign exempt income is irrelevant if there is a double taxation agrement.
You must not be covered by a double taxation agreement. Is that the case.
I am finding it a little difficult to pin down your circumstances
ggumpshots,
I've only worked in countries that have DTA's with Australia (South Korea, Netherlands and Singapore), so have always paid tax on my income (wages) in the country that I was living in and had no tax liability in Oz for that foreign income.
In line with the subject of my earlier email, the only effect (I understand) this foreign income may have on my Oz tax is IF I am a Resident for tax purposes and have carried forward tax losses in Oz, then this net of tax foreign income could be applied against those carried forward tax losses.
As a Non-Resident for tax purposes working in those same countries my understanding is that my net foreign income would not be applied against carried forward losses (so they'll still be there for future use).
Cheers,
I've only worked in countries that have DTA's with Australia (South Korea, Netherlands and Singapore), so have always paid tax on my income (wages) in the country that I was living in and had no tax liability in Oz for that foreign income.
In line with the subject of my earlier email, the only effect (I understand) this foreign income may have on my Oz tax is IF I am a Resident for tax purposes and have carried forward tax losses in Oz, then this net of tax foreign income could be applied against those carried forward tax losses.
As a Non-Resident for tax purposes working in those same countries my understanding is that my net foreign income would not be applied against carried forward losses (so they'll still be there for future use).
Cheers,
What happens about CGT if you buy shares in the country you work in as a resident of that country . Return to Australia , and then sell a few years down the track as a resident of OZ.
you sell the shares at a
1 loss
2 capital gain
you sell the shares at a
1 loss
2 capital gain
OOoook, so what if:
I am currently Aust Non-Res, but US-Res. I have a PPOR in US.
Next year we are moving back to Aust. So once again i will become an Aust Res. The current PPOR in the US we are going to turn into an IP. What is the status of the income/loss of the US property in terms of Aust tax?
I am currently Aust Non-Res, but US-Res. I have a PPOR in US.
Next year we are moving back to Aust. So once again i will become an Aust Res. The current PPOR in the US we are going to turn into an IP. What is the status of the income/loss of the US property in terms of Aust tax?
Taxable in Australia as foreign income and hopefully by then the bill currently before parliament will be through so you will have no trouble offsetting any loss against AUstralian income. You also get a credit for any tax paid in US. Even if the bill is not through you will still probably get a full offset because all the interest is allowed to be offset against Australian income.
Lots on this in October Australian Property Investor
Lots on this in October Australian Property Investor
This is what my accountant said too... I am working 4 weeks on & 4 off in PNG on an oil rig. The losses on my IP's can't be carried over, so I do a few shifts when I am back home so they are not a total loss!
Julia has a good publication on her website about overseas income
http://www.bantacs.com.au/booklets/Overseas_Booklet.pdf
Steve
Does the same logic/rule apply for real estate ?
If you buy an OZ Investment property, whilst overseas,
are you deemed to have acquired property at the market value at the date of return(ie no 50% CGT discount for another 12 months) ?
Apart from a valuer, who else would be deemed acceptable by the ATO, in establishing the value of the Investment property ?
I am allowed to asses the value of items when I calculate a depreciation schedule. Can I do this when calculating CGT for property?
Deeming by residency acuisition does not work for taxable Australian property.
You are able to self estimate the value and life of depreciable assets (oven, hot water tank, etc.) but for building allowances (40 year stuff) you need a professional valuation if you can't get the info from the vendor.
Cheers,
Rob
You are able to self estimate the value and life of depreciable assets (oven, hot water tank, etc.) but for building allowances (40 year stuff) you need a professional valuation if you can't get the info from the vendor.
Cheers,
Rob
Great info in this thread..
How does the losses situation work, if you moved overseas, turned your Oz PPOR into an IP, then returned to Australia a few years later and moved back into that property?
Can you still claim losses for the 2-3 years you were overseas if your property was -ve cashflow?
How does the losses situation work, if you moved overseas, turned your Oz PPOR into an IP, then returned to Australia a few years later and moved back into that property?
Can you still claim losses for the 2-3 years you were overseas if your property was -ve cashflow?
location is irrelevant. Claim the losses
I am in a similar situation, thinking about buying an IP. I am a resident for tax purposes, earning foreign exempt income. Therefore any of these losses would be offset against my exempt income unfortunately. In my situation I was wondering if it might not be better to set up a trust and purchase the IP that way, so that losses can be carried forward?
I am only just starting to look into PI. The foreign exempt income complicates matters a bit when weighing up the various pros and cons of IP vs shares, etc. I guess I need to talk to an accountant. Should any tax accountant be able to work all of this stuff out or do I need to search for a specialist?
