Tax in Australia - Declaring Foreign Income
#1
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Joined: Sep 2012
Posts: 1
Tax in Australia - Declaring Foreign Income
Hi,
I'm living in Australia on a temporary visa (457) but am a permanent resident for tax purposes. According to the ATO, this means I don't have to claim any foreign income (http://www.ato.gov.au/individuals/co...tent/76537.htm) in Australia, but does anyone know if I can? I have losses in my rental properties overseas that I was hoping to offset in Australia.
Any comments would be appreciated!
Thanks
I'm living in Australia on a temporary visa (457) but am a permanent resident for tax purposes. According to the ATO, this means I don't have to claim any foreign income (http://www.ato.gov.au/individuals/co...tent/76537.htm) in Australia, but does anyone know if I can? I have losses in my rental properties overseas that I was hoping to offset in Australia.
Any comments would be appreciated!
Thanks
#2
Re: Tax in Australia - Declaring Foreign Income
Hi,
I'm living in Australia on a temporary visa (457) but am a permanent resident for tax purposes. According to the ATO, this means I don't have to claim any foreign income (http://www.ato.gov.au/individuals/co...tent/76537.htm) in Australia, but does anyone know if I can? I have losses in my rental properties overseas that I was hoping to offset in Australia.
Any comments would be appreciated!
Thanks
I'm living in Australia on a temporary visa (457) but am a permanent resident for tax purposes. According to the ATO, this means I don't have to claim any foreign income (http://www.ato.gov.au/individuals/co...tent/76537.htm) in Australia, but does anyone know if I can? I have losses in my rental properties overseas that I was hoping to offset in Australia.
Any comments would be appreciated!
Thanks
The answer is no.
#3
Forum Regular
Joined: Jul 2012
Posts: 52
Re: Tax in Australia - Declaring Foreign Income
This page would suggest that if the income is non-assessable in Australia then you can't claim the associated expenses (and therefore the loss): http://www.ato.gov.au/individuals/co...tm&page=10&H10
#4
Re: Tax in Australia - Declaring Foreign Income
Go to the bottom of that web page and click on general questions.
The answer is still No.
The answer is still No.
#5
Re: Tax in Australia - Declaring Foreign Income
Hi,
I'm living in Australia on a temporary visa (457) but am a permanent resident for tax purposes. According to the ATO, this means I don't have to claim any foreign income (http://www.ato.gov.au/individuals/co...tent/76537.htm) in Australia, but does anyone know if I can? I have losses in my rental properties overseas that I was hoping to offset in Australia.
Any comments would be appreciated!
Thanks
I'm living in Australia on a temporary visa (457) but am a permanent resident for tax purposes. According to the ATO, this means I don't have to claim any foreign income (http://www.ato.gov.au/individuals/co...tent/76537.htm) in Australia, but does anyone know if I can? I have losses in my rental properties overseas that I was hoping to offset in Australia.
Any comments would be appreciated!
Thanks
Why are you making losses on a property anyway, are you not charging enough rent? It doesn't take much to cover mortgage interest in UK these days. It makes far mor sen to restructure your investments so that they make money rather than expect Australia to pick up the tab.
#6
Re: Tax in Australia - Declaring Foreign Income
Well talk about wanting it both ways! I expect you would not be asking if you could pay tax that is.
Why are you making losses on a property anyway, are you not charging enough rent? It doesn't take much to cover mortgage interest in UK these days. It makes far mor sen to restructure your investments so that they make money rather than expect Australia to pick up the tab.
Why are you making losses on a property anyway, are you not charging enough rent? It doesn't take much to cover mortgage interest in UK these days. It makes far mor sen to restructure your investments so that they make money rather than expect Australia to pick up the tab.
So , it DOES take much to cover a mortgage payment in UK if your circumstances are different.
On to the tax aspect. As a Temp Resident, although full resident for tax purposes, I was not liable to declare any foreign income. But, at the same time I could not claim any offsets against any foreign losses, totally fair in my opinion. Now, however, as my Tax Advisor has determined, as a PR I AM liable for ALL earnings, foreign and Australian, and CAN use my rent/mortgage loss as an offset. There is an example of this on the ATO website and we had a small thread on this a few months back.
#7
Re: Tax in Australia - Declaring Foreign Income
OK, I can add something here because I am in a similar position. My UK mortgage payments are 1100 pounds a month, my rental income in only 750 pounds a month. Its not because I am not charging enough its because that is the rental rate for a two bedroom house where it is and because I went for a prime location and a high mortgage percentage.
So , it DOES take much to cover a mortgage payment in UK if your circumstances are different.
So , it DOES take much to cover a mortgage payment in UK if your circumstances are different.
.
#8
Re: Tax in Australia - Declaring Foreign Income
No, he's actually paying back the mortgage, god forbid.
Can't wait to see "investors" faces in 15years time when they realise that they house they bought post 2005 is only worth what they paid for it and that they need to sell their retirement fund.
Can't wait to see "investors" faces in 15years time when they realise that they house they bought post 2005 is only worth what they paid for it and that they need to sell their retirement fund.
#9
Re: Tax in Australia - Declaring Foreign Income
Well if it is the mortgage it is not tax deductible and therefore quite probably is making a profit, which is now taxable.
#11
Re: Tax in Australia - Declaring Foreign Income
And as such it is not tax deductible, only the interest is tax deductable and therefore it is quite possible that Paddyo is not in a loss making position at all.
#12
Re: Tax in Australia - Declaring Foreign Income
OK, I can add something here because I am in a similar position. My UK mortgage payments are 1100 pounds a month, my rental income in only 750 pounds a month. Its not because I am not charging enough its because that is the rental rate for a two bedroom house where it is and because I went for a prime location and a high mortgage percentage.
So , it DOES take much to cover a mortgage payment in UK if your circumstances are different.
On to the tax aspect. As a Temp Resident, although full resident for tax purposes, I was not liable to declare any foreign income. But, at the same time I could not claim any offsets against any foreign losses, totally fair in my opinion. Now, however, as my Tax Advisor has determined, as a PR I AM liable for ALL earnings, foreign and Australian, and CAN use my rent/mortgage loss as an offset. There is an example of this on the ATO website and we had a small thread on this a few months back.
So , it DOES take much to cover a mortgage payment in UK if your circumstances are different.
On to the tax aspect. As a Temp Resident, although full resident for tax purposes, I was not liable to declare any foreign income. But, at the same time I could not claim any offsets against any foreign losses, totally fair in my opinion. Now, however, as my Tax Advisor has determined, as a PR I AM liable for ALL earnings, foreign and Australian, and CAN use my rent/mortgage loss as an offset. There is an example of this on the ATO website and we had a small thread on this a few months back.
you can only use any loss from comparing payment of interest vs income from rent, repayment of principal loan can't be used in the calculations.
if you have a repayment mortgage costing 1100, you're probably breaking even
#13
Re: Tax in Australia - Declaring Foreign Income
have you signed the form with your letting agent to stop you being taxed on the rental income in the UK?
you can only use any loss from comparing payment of interest vs income from rent, repayment of principal loan can't be used in the calculations.
if you have a repayment mortgage costing 1100, you're probably breaking even
you can only use any loss from comparing payment of interest vs income from rent, repayment of principal loan can't be used in the calculations.
if you have a repayment mortgage costing 1100, you're probably breaking even
I'm not sure I grasp your second point right, my Tax adviser told me that from now I can claim an offset as my property is making a deficit and so my foreign income is affected by it. E.G. I am declaring 750 per month rental income but actually paying out 1100 per month to run it...thereby at a loss.
I did ask about this a few months back and the general consensus was in agreement with my Tax adviser.
#14
Re: Tax in Australia - Declaring Foreign Income
Yes, Form N1 I think it is, all signed!
I'm not sure I grasp your second point right, my Tax adviser told me that from now I can claim an offset as my property is making a deficit and so my foreign income is affected by it. E.G. I am declaring 750 per month rental income but actually paying out 1100 per month to run it...thereby at a loss.
I did ask about this a few months back and the general consensus was in agreement with my Tax adviser.
I'm not sure I grasp your second point right, my Tax adviser told me that from now I can claim an offset as my property is making a deficit and so my foreign income is affected by it. E.G. I am declaring 750 per month rental income but actually paying out 1100 per month to run it...thereby at a loss.
I did ask about this a few months back and the general consensus was in agreement with my Tax adviser.
repayment or interest only?
#15
Re: Tax in Australia - Declaring Foreign Income
er......good question and well phrased, unfortunately the answer is not within my grasp at this time!!
I think its Interest....or it could be Repayment....sorry, can't remember off hand!
Is that the difference then? You can't claim offset on the repayment but you can claim offset against the interest , if it is higher than the rental return?
I think its Interest....or it could be Repayment....sorry, can't remember off hand!
Is that the difference then? You can't claim offset on the repayment but you can claim offset against the interest , if it is higher than the rental return?