TAX: Carry losses forward to offset future profits

[stephenb465]

I'm trying to get my head around using the Somerset PIA Software,
Currently I work overseas and pay no income tax in Australia except for the positive geared property I have in WA.

But for this example I will ignore the property in WA and just run the same running and income cost with the only difference being: Personal income

A)If I work in Australia, income $110kpa
B) Overseas no Australia income

With option “A” it cost me 139pw ($7,228pa)
With option “B” it cost me 286pw (14,872)
(I understand the difference is being the neg. gearing)

So my big question is, can I carry this loss forward and how would I use it in the future, would it only be used if/when I sell the property?

How do I keep a record of it, or is that the accountants job

Another point I'm observing is that if I purchase a couple more properties similar to the above numbers, I may be financially better off staying and working in Australia. Something worth considering for my medium term goal.

Would be great to hear feed back from any expats out there

Thanks

Stephen

 

[Mry]

If you are still treated as an Australian resident for tax purposes, your losses are reduced by exempt income received overseas. You will only be able to carry forward losses if you are a non resident for tax purposes.

 

[stephenb465]

If you are still treated as an Australian resident for tax purposes, your losses are reduced by exempt income received overseas. You will only be able to carry forward losses if you are a non resident for tax purposes.

Thanks Mry

Never thought of that, being a non resident. I'm applying for an other job overseas and hopefully it will be a two year contract. I know the Australia Tax dep. have changed their tax requirements for overseas workers, just to make it more complicated.

Seems the best way around this is to purchase properties that are cash flow positive, therefore no/very little tax involved. easy said than done, even via a BA.

I think I need to do more research, I eventually will go to an account for advice, but first I need to get some basic knowledge under mu belt.

any more advice would be apprecated

Stephen