Tax Deduction of UK Property
Apr 10th 2009, 9:21 am
#1
Forum Regular
Thread Starter
Joined: Feb 2009
Posts: 152
Tax Deduction of UK Property
Just when it all seemed to be going so well..........
Can someone please help me on a tax issue. Previously, I believe that any losses on the rental of a property outside of Australia could be carried over from one year to the next but could not be offset against Australian earnings. Having read this:
http://www.ato.gov.au/individuals/co....htm&page=5&H5
it would appear now that losses on foreign earnings from property CAN be deducted from Australian income. Is this correct?
And second point, are the allowable deductions on property rentals for offshore rentals the same as Australian allowances.
Reason for asking: We have sold (STC) our home, are due to exchange on Wednesday but the FTB at the start of the chain is getting scared (bless) so we are looking at forming the chain into a loop, buying the place at the start of the chain and renting out. However, in order to make it work, we need to look at how we can minimise tax liability.
If you can advise from a position of professional or personal knowledge then I would be really grateful.
If I have bored you - then my apologies!!
Can someone please help me on a tax issue. Previously, I believe that any losses on the rental of a property outside of Australia could be carried over from one year to the next but could not be offset against Australian earnings. Having read this:
http://www.ato.gov.au/individuals/co....htm&page=5&H5
it would appear now that losses on foreign earnings from property CAN be deducted from Australian income. Is this correct?
And second point, are the allowable deductions on property rentals for offshore rentals the same as Australian allowances.
Reason for asking: We have sold (STC) our home, are due to exchange on Wednesday but the FTB at the start of the chain is getting scared (bless) so we are looking at forming the chain into a loop, buying the place at the start of the chain and renting out. However, in order to make it work, we need to look at how we can minimise tax liability.
If you can advise from a position of professional or personal knowledge then I would be really grateful.
If I have bored you - then my apologies!!
Apr 10th 2009, 9:42 am
#2
BE Enthusiast
Joined: Mar 2008
Location: 60 Kms north of Sydney
Posts: 553
Re: Tax Deduction of UK Property
Safest way of dealing with this is to write to the Tax Office with as much detail as possible and ask for a private ruling, they will give you a number for that ruling, you quote it on your tax return and you should not then have any problems.
