killerhales

Thanks for the link, until reading this I had thought that foreign losses were only "offsettable" against foreign income; applying rental losses we have incurred against local income will certainly help get our tax bill down a bit!

Jen1977ni

I've emailed the ATO link to my accountant bloke, let's see what he comes back with....

ExSmoggie

That used to be the case but it changed fairly recently...from 1st July 08 I think from memory

ozhappy981

As I said in my PM, your accountant is talking utter bollocks.

An accountant that doesn't know something so basic ... Australian residents are taxed on their worldwide income and foreign losses are offset against other income ... and accountant who does not know this is useless.

Sounds like a first-year trainee with no training!

Samleeuk

We making a small profit on mortgage, were told this week we must declare and pay tax on our return in Oz. They willk charge/ upgrade on what tax we paid in England...which basically is none as under threshold. Profit for year will be about 2000 pounds split in two as in joint names. So under UK threshold. But here we both work so after conversion to dollars we will have to pay 30% tax on the profit. Also we were told if we buy a property in Oz whule still owning UK on then we have 6 months to sell UK one. If we still have UK one and sell after 6 months we will be liable for Oz tax (30% or more) on the profit made on the UK one......has anyone else been told this, as this really makes a difference on what we do in future......

ianandhelena

1.If you are resident for tax purposes in Australia, then your worldwide income and expenses are taxable via the aus tax system.

2. Change your tax accountant.

3. you can claim any expense against any income-producing investment, so interest, insurance, repairs (not improvements) , rental agent etc are claimable on your UK rental.

4. So the only tax you pay is on your net income from the property.

ianandhelena

Start here:

http://www.ato.gov.au/individuals/co...tent/20427.htm

jan

It is very unusual for landlords to pay council tax or water rates? Who is the critical illness cover for? I would have thought you would be better of having landlords insurance which covers your loss of rent should the tenant default or be made redundant during the tenancy.
I rent several properties in the u.k. and find Agents management as useful as a chocolate fire guard! LOL! All they do is phone you anyway when something goes wrong! And check that the tenant has paid the money in each month.
The best way to use agents is tenant find and credit ref check only oh! and hold the deposit that should be just one months rent. All you need then is either a decent odd jobber or a plumber and electrician who you can call on not much else can go wrong.
Good Luck anyway!

Jen1977ni

Yeah...sorted, just got to speak to the OH at the weekend, I really appreciate your advice to date

Jen1977ni

Unusual to pay rates? You obviously have no clue what the housing market is like in Northern Ireland then!

I'm more than happy to have my agent, he's worth his weight in gold, AND some, I guess it's all down to individual choice, this isn't a business for me, like it so obviously is for you, having several properties, this is about survival til the housing market improves! Thanks for the advice nonetheless...

jan

Well they say you learn something new every day! I did not know you were from Northern Ireland so would not be aware that it is the landlords responsibility to pay the rates. I asumed wrongly that you were from England. Sorry! And good luck!
Next time I will look at the Avatar. Lol!

Jen1977ni

Some landlords would try to incorporate the cost of the rates into the rent, but since the housing market is so crap, that'd simply not happen! lol

Jen1977ni

The Critical Illness Cover protects me in the event of a serious illness and will pay me a lump sum. I can then use this to clear any outstanding mortgage or use it to replace my income if I'm unable to work because of the illness. The landlord insurance will not obviously pay out in this scenario, it is purely to cover the tenants rental payments.

Harvey_Harvey

There are more and more UK Estate Agents offering guaranteed letting schemes. We live in Bournemouth and 'Slades' currently offer 11 months per year guaranteed lettings and can get us £1,200 per month rent for our 3 bed detached house. Just a thought so you can look into it and start making a profit instead of a loss

Jen1977ni

Well my property isn't in Bournemouth, it's in Northern Ireland, where the housing market really is at an all time low. Why would someone pay over the odds for my house, when other houses to let in the area are in the same price bracket? Exactly...